Emergency services were called to the home in Tumbi Umbi, south-west of The Entrance, about 5.15pm on Thursday to carry out a welfare check.
Paramedics found the woman, believed to be in her 80s, dead in the Eastern Road home.
A 56-year-old man was arrested at the scene and taken to Wyong police station.
Police said he was “assisting with inquiries”.
The home remains a crime scene as police investigate.
Anyone with information can contact Crime Stoppers on 1800 333 000.
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