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Angela Gauld, aged 58, sustained a stab wound to her chest during an alleged incident at her residence on Creekside Esplanade in Cooloola Cove around 7:15 pm last evening.
Despite being treated at the scene, she died of her injuries.
Detective Craig Mansfield said a weapon was seized and police were yet to establish a motive.
“At this point in time it’s being treated as a suspicious death,” he said.
Gauld’s death has rocked the township situated between Rainbow Beach and Tin Can Bay, with neighbours describing her as “energetic” and “lovely”.
Police are questioning a man aged in his 50s who was at the residence at the time of her death.
Mansfield said the man was an associate of Gauld’s.
Forensic specialists and detectives were still scouring the crime scene today.
A post-mortem will be conducted tomorrow, according to police.