Bahrain's interior ministery said Tuesday that the man died "due to his wounds" in the village of Daih, a suburb of Manama, AFP reported.
According to witnesses, the pro-democracy protester was wounded on Monday evening during clashes between police and demonstrators.
The ministry said it has launched an inquiry to see whether police had resorted to the "unjustified use of arms" in dispersing the protest.
Another pro-democracy protester was killed of bullet wounds in his back in the village on Monday.
Police used tear gas to disperse hundreds of protesters in several villages of Shia Muslim majority on the same day, the interior ministry and witnesses said.
Women, elderly people and a paramedic were among those who had required hospitalization by early evening.
Activists, inspired by revolutions in Egypt and Tunisia, dubbed Monday "the Day of Rage" to express disappointment at the political reforms of the past decade, which have failed to bring prosperity and real change.
The majority Shia population in Bahrain has been complaining about inequality and oppression. The government has been clamping down on the opposition since the country's controversial general elections in August last year.
Since late Sunday, Bahrain's security forces have been patrolling shopping centers and other locations to monitor people's movements amid calls by opposition groups for pro-democracy protests.
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