On July 7, 2015, Baker announced his retirement from broadcasting, and revealed that he had been diagnosed with lung cancer. During his final broadcast, he told his audience, "Do not shed a tear. Give a smile when you say my name".
Baker died on August 10, 2015, at his home in Catawba County, North Carolina. During the August 2015 race weekend at Michigan International Speedway, the drivers in all three NASCAR series placed stickers on their cars to honor Baker's legacy.