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Published 19:32 11 Sept 2017 BST
Updated 19:44 11 Sept 2017 BST
Police have said that her body was found in a wooded area of the festival site.
Louella was the actor's youngest child. In a statement, his agent said: "Sadly, I can confirm the tragic death of John Michie's daughter, Louella, at Bestival.
"John and his wife Carol ask that the privacy of their family be respected at this traumatic time."
Police furthermore said in response: "Following the discovery of the woman's body we have now launched an investigation into her death. We have specially trained officers supporting her family at this very difficult time.
"We are working closely with the festival organisers and I would appeal to anyone with any information about the incident to contact Dorset Police."
In a statement, the organisers of Bestival added: "Following today's news announcement, the team at Bestival are devastated to hear about this tragic news.
"We continue to support the police in their ongoing investigation and our thoughts and prayers are with all the woman's family and friends."
As well as Corrie's Karl Munro, Mr Michie also starred in Taggart and can currently be seen in Holby City.
The 60-year-old and his wife have two other children, Daisy, 27, and Sam, 26.
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