It happened as emergency crews were attempting to free the dolphin from the creek.
People from Cape May Court House, New Jersey, said the dolphin was first spotted earlier this week.
Residents concerned over dolphin stuck in small creek in Cape May County
No one knew for sure how the animal ended up in the small creek.
The Marine Mammal Stranding Center was called in to help remove the dolphin and return it to its natural habitat in the open ocean.
In a post made to Facebook, the stranding center announced it made a second attempt to free the Bottlenose dolphin from Skeeter Island Creek on Friday.
Authorities say dozens of people and three boats were in the water attempting to use non-invasive techniques to herd the dolphin out of the creek.
When those attempts failed, an in-water capture was used as a last resort.
According to the post, in-water captures "are high risk as they pose a significant danger to both the dolphin as well as the responders."
To try and secure the dolphin, crews deployed a net around it and brought it toward the shore.
That's when officials say the dolphin unfortunately panicked and died within minutes.
The dolphin was reportedly transported to the New Jersey Animal Health and Diagnostic Lab for a full necropsy.
Officials with the stranding center wrote on Facebook in part, "Our entire team is deeply saddened about this outcome. Out of habitat cetaceans are the most difficult scenario in marine mammal rescue. As animals that live in the open ocean, this type of habitat is foreign to them and causes immense stress, making the chances of rescue and survival slim."