Does orochimaru die in Naruto Shippuden?

Yes, Orochimaru does die. When Orochimaru tries to hold Sasuke in one place so Orochimaru can inhabit Sasuke's body and control the Sharingan he possesses, Sasuke uses the Sharingan against him and kills Orochimaru, all before his assistant comes back after he left to take care of some business.