Actually, in The Last Battle, everyone dies. It is an allegory for Armageddon and the end of the world. The beauty of the story is that noble beasts such as Jewel rejoin Aslan in the new, recreated world.
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No, Jewel the unicorn does not die in the Last Battle of Narnia. The fate of Jewel is not detailed in the book as the focus is primarily on the human characters and their journey.