Her parachute became tangled on descent and she crashed into a tree along with her experienced tandem instructor, news.com.au has reported.
She had been doing a tandem dive with one of the instructors.
An unnamed eyewitness told the Cairns Post that he saw one of the skydivers falling.
One shocked onlooker said: "You could see one chute was tangled and it wasn't opening".
The jumpers were not immediately named, but police said the dead men were instructors at Skydive Australia.
Located halfway between Cairns and Townsville, Mission Beach attracts backpackers making their way down the Queensland coast, and multiple companies offer skydiving in the area.
The other two bodies were found in a tree nearby.
"Every person in Mission Beach we have spoken to about #skydive tragedy is absolutely heartbroken Big industry, well supported by locals", reporter Daniel Bateman reported on Twitter.
Police in Australia have confirmed that three people have died following a skydiving accident. "I had my heart in my mouth", he said.
"The company extends its deepest sympathies and heartfelt condolences to the individuals and families involved and the broader skydiving community", it added.
Our thoughts are with the families of the two men, thought to be in their thirties, and the one woman, in her fifties, who died in the accident. Police, the Australian Parachuting Federation and other investigators remain on the scene.