Ahdieh Yazdanparast, 46, a mother-of-three, died in hospital late on Saturday night from injuries she suffered in a ferocious blaze at Venus Hair & Beauty in Stirling earlier that day.
One witness told of trying to rescue the stricken woman but was beaten back by dense smoke coming from the cellar of the premises in Maxwell Place.
"Smoke and flames were coming from the salon and I tried to go inside - the heat was too much," Oakayil Suneer, 33, who runs a neighbouring kebab shop, said.
"I tried to help her but there was too much smoke. I couldn't get to her. Her whole body was burning."
Elaine McClay, 48, who worked in a bed and breakfast owned by Mrs Yazdanparast, said she had received a text from her friend on the morning of the fire. "It started off like any other day," she said.
Fire crews pulled Mrs Yazdanparast from the salon around 11.45am on Saturday.
The injured man was given first aid at the scene by two men until emergency services arrived, and both victims were taken to Forth Valley Royal Infirmary, in Larbert, for treatment.
The man was later transferred to Glasgow Royal Infirmary.
It is understood Mrs Yazdanparast had been rebuilding her life following a bitter divorce from her husband Ahmed who ran a takeaway business above her salon. Both are believed to be originally from Iran.
Police said they are not looking for anyone in connection with the fire.
They had issued an earlier appeal to speak to the men seen giving first aid.
A lady who left the salon shortly before the fire and a man with a light jacket were also asked to come forward.