[Q] What happens when the principal E-2 visa/status holder dies? What can the spouse do?

There is no grace period, so that legally speaking, when the principal E-2 holder died, her status as E-2 dependent disappeared! But if her I-94 stay is still valid, she is not accruing any unlawful presence.

What she should have done or should do now is to try to get herself as the E-2 principal. Or she can try to pursue green card route.