In the finale, after helping Michael, T-Bag confronts the man who set him up as a child—Jacob Ness, Michael’s nemesis. With his cancer ravaging him, T-Bag has nothing to lose. He shoots Jacob dead. His final act as a free man is to turn to Michael and say, "I guess I’m going home."
He then surrenders to the police. The last we see of T-Bag in Season 5 is him being led away in handcuffs. The implication is clear: He will die in prison from his illness. The Final Twist: Is He Really Dead? In 2020, a featurette titled Prison Break: The Final Break (confusingly named after the 2009 movie) was released as part of a DVD box set. This extended episode retcons Season 5’s implied death.
If you’re asking, "Does T-Bag finally get his comeuppance and die?"—the answer is complicated.
Few characters in television history have walked the line between villain and victim as masterfully as Theodore "T-Bag" Bagwell. Played with chilling brilliance by Robert Knepper, T-Bag is a racist, manipulative, and violent predator. Yet, his heartbreaking backstory and moments of desperate vulnerability made him a fan favorite.
However, this was a lie to facilitate the plot. Michael Scofield, believed dead, needed T-Bag’s unique criminal skills to help take down a terrorist.