The province has been hit by heavy rains over the weekend causing severe flooding.
"The body of one woman has been recovered from the mudslide which occurred across Hwy 99 near Lillooet on Monday morning and search efforts are continuing today," the police said in a statement issued overnight.
The circumstances of the victim's death are being established, it added.
While the police are yet to confirm the number of missing people and vehicles caught up in the debris as a result of the mudslide, investigators have so far received two missing people reports, the statement read.