The woman, believed to be in her 30s, was one of three people inside the house on Harvest Road, Smethwick, when the blaze began in the early hours of Saturday morning.
She was pulled from the flames after firefighters found her unconscious in a bedroom but was pronounced dead shortly afterwards, West Midlands Fire Service said.
Two other people, understood to be the woman's mother and father and aged in their 50s, were also in the house but managed to escape after neighbours raised the alarm at around 4.30am. They were both taken to hospital after being treated by medics at the scene.
Taxi driver Ashmetullah Faizy called 999 after returning home from work and noticing flames rising from the semi-detached house across the road.
Nineteen firefighters attended the scene, with four crews arriving from West Bromwich, Smethwick, Oldbury and Woodgate fire stations.
The fire was confirmed out at 6.20am having gutted the house, with every window on the front of the building blackened and charred.
The cause of the blaze has not yet been confirmed and the house was cordoned off as fire investigators examined the scene throughout Saturday.
A spokesman for West Midlands Fire Service said: "Our thoughts are with them and everyone affected by this incident.
"Investigators from West Midlands Fire Service will be working with police colleagues to establish how the fire started."
Mr Faizy, 38, said the woman who died had been trapped upstairs as the fire quickly ripped through the building.
He helped the couple who escaped, giving them chairs and clothes.
Meanwhile other neighbours shared messages of support on social media.
Replying to a tweet from West Midlands Fire Service, Stephen Hodgkinson said: "Well done to all involved for containing the fire. This is my next door neighbours house. Prayers and thoughts to all those involved."
Anna-Marie Mullins added: "This is my neighbour, your team have done an amazing job controlling the situation. My prayers go out to the family involved."