The driver of the single decker bus was hurt in the crash, along with seven passengers who suffered whiplash, cuts and bruises.
Police are appealing for information after the accident at 11.40am on Tuesday May 16. Police said a Kia Sorento was exiting a roundabout on Scotland Road when it collided with an oncoming single decker bus, the 755 service between Morecambe and Bowness.
The driver of the Kia was sadly pronounced deceased.
The bus driver, a man in his 40s, suffered some cuts to his face and left leg.
Seven passengers on the bus sustained injuries and were treated by the ambulance service.
The road was closed at the Scotland Road roundabout, main streets in Carnforth were also closed and an ambulance, air ambulance and fire crews were called.
Three fire engines and crews were sent to the incident. Firefighters worked alongside paramedics to rescue casualties, including four passengers on the bus.
The road was closed for four hours while a collision investigation took place.
A Stagecoach spokesman said: “Our thoughts are with the family of the person who died and for those affected by this incident.
“Safety is our highest priority and we will assist police fully with their enquiries into the incident.”
PS Claire Pearson of the Road Policing Unit said: “This is a tragic incident where a woman has sadly died and my thoughts remain with her family and friends at this time.
Anyone with information can contact police on 101 quoting log 448 of May 16.