Smith was a player for Dundee before moving into coaching where he worked as Sir Alex Ferguson's assistant for Scotland at the 1986 World Cup.
He headed to Rangers after that to be Graeme Souness' assistant before taking on the job full time in 1991.
He became an icon with the Glasgow giants, as he won 10 Scottish Premiership titles across two spells at the club.
In 1998 he headed to Everton for a four-year stint as manager, and that was followed by a brief spell as Ferguson's assistant at Manchester United.
Three years as Scotland boss were followed by a return to Rangers, where he later became a director.
Jim White paid an emotional tribute to Smith after the news broke while he was on talkSPORT.
"I knew Walter Smith for many years and even though I knew he was unwell of late, this comes as a shock," said White on air.
"Walter Smith, former Rangers, Scotland and Everton manager has died at the age of 73.
"Hugely respected in Scottish football. He won 10 top flight titles as manager, five Scottish cups, six League Cups as well as leading Rangers to the UEFA Cup final in 2008.
"He will quite rightly be remembered by the football community right across the world as this man commanded enormous respect.
"This man was Graeme Souness' number two when he came in from Sampdoria and took over as manager of Rangers and Walter took on the role himself.
"He was an immensely popular figure in Scottish football, not just with Rangers fans but with fans of every other club and I include Celtic in that as well.
"A massive figure in Scottish football and it is such sad news."
Tributes flooded in from across the football community to the great man, including from Rangers' Old Firm rivals Celtic and current Scotland captain, Liverpool defender Andy Robertson.
Rangers posted an incredible video in memory of Smith, who delivered amazing success for the club.
Arch rivals Celtic showed that Smith was respected across the divide in Scotland, and posted on social media:
"Celtic Football Club has expressed its deepest sympathies following the sad news that former Rangers and Scotland manager Walter Smith has passed away after battling illness so bravely.
"Clearly, this is absolutely devastating news and our thoughts and prayers are very much with Walter's wife, children and wider family at this very sad time.
"Walter was a tremendous servant to Scottish football for so many years, and during his time as manager of the Scotland national side, he forged a close friendship with Celtic legend, Tommy Burns, who was part of the coaching set-up.
"Everyone at Celtic sends their heartfelt condolences."
His former club Everton said: "A very sad day for football. Walter Smith OBE, former Rangers, Scotland and Everton manager, has passed away.
"A man held in high regard by all his players. Our thoughts are with Walter's loved ones at this tough time."
Former Everton striker Kevin Campbell said: "R.I.P. Walter Smith you were such a great man and I can't thank youenough for bringing me to @Everton a true football great."
Liverpool star Andy Robertson said: "Thoughts, prayers and condolences with Walter Smith's family and loved ones today.
"Heartbreaking to lose another great of Scottish football. A man of wisdom, dignity and integrity whose legacy will live on. May he rest in peace."
Chris Sutton said: "Really sad news to hear of the passing of Walter Smith. He was a true gentleman. Thoughts and prayers go out to Walter's family."
Frank McAvennie wrote: "Sad news this morning, Walter Smith has passed away and will be missed by so many people, (if you met Walter you liked him simple as that) RIP mate, thoughts and prayers are with his family and friends."
John Hartson said: "RIP Walter Smith.. Walter and wife Ethel used to attend my Charity Ball every year and was a great fun.. thoughts are with Ethel and the Smith family and friends."