No, Sasuke absorbed Orochimaru for a while, then during his fight against Itachi Orochimaru broke free and was sealed by Itachi's Totsuka sword. Later Sasuke brought Orochimaru back.
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Yes, Orochimaru does die. When Orochimaru tries to hold Sasuke in one place so Orochimaru can inhabit Sasuke's body and control the Sharingan he possesses, Sasuke uses the Sharingan against him and kills Orochimaru, all before his assistant comes back after he left to take care of some business.
orochimaru dies in episode 138 of naruto shippuden
SPOILER WARNING!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!----------------------------------------------------------------------------------------------------------Itachi Uchiha killed Orochimaru. Some say that Sasuke Uchiha killed him, but technically, he didn't. Sasuke only consumed/took over Orochimaru. Then, in the battle between Sasuke and Itachi, Orochimaru came out of Sasuke, then Itachi killed him. Then, Sasuke Uchiha killed Itachi Uchiha
Hmm... how should I answer this question? Simply put, Orochimaru was not killed by Itachi, but by Sasuke. Sasuke killed Orochimaru in Orochimaru's weakest condition, knowing that Orochimaru had no more power to grant him.
Orochimaru Nikameto Tsunade Senju Jiraya Fosintao