zugrunde gehen
to perish
To be completely destroyed, go under, or die.
Ohne Wasser würden die Pflanzen in der Hitze schnell zugrunde gehen.
Without water, the plants would quickly perish in the heat.

to perish / underlie
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to perish
To be completely destroyed, go under, or die.
Ohne Wasser würden die Pflanzen in der Hitze schnell zugrunde gehen.
Without water, the plants would quickly perish in the heat.

The word 'zugrunde' is a fixed combination of 'zu' (to) and 'Grunde', the dative of 'der Grund' (ground/basis). It literally means 'to the ground' or 'onto the ground'. This origin explains the meanings of destruction or basis.
Das alte Gebäude ist bei dem Sturm zugrunde gegangen.
The old building perished in the storm.
'Zugrunde' is almost always used with a verb and behaves in the sentence like a separable prefix. In a main clause, the conjugated verb is in position 2 and 'zugrunde' is at the end. In a subordinate clause, both parts stand together at the end.
Seine Firma ging durch die Krise zugrunde.
His company went under because of the crisis.
The expression 'zugrunde liegen' (to underlie/be based on) is used with the dative. The thing that serves as the basis is the subject, and the thing for which it is the basis is in the dative.
Dem Vertrag liegt eine lange Verhandlung zugrunde.
A long negotiation underlies the contract.
The expression 'zugrunde legen' (to base on/use as a basis) is used with an accusative object. The person acting is the subject, and the thing used as the basis is in the accusative.
Der Gutachter legte seiner Bewertung die neuesten Daten zugrunde.
The expert based his evaluation on the latest data.
All expressions with 'zugrunde' belong more to written language or a formal style. 'Zugrunde liegen' (to underlie/be based on) and 'zugrunde legen' (to base on/use as a basis) are especially typical of academic, legal, or official texts.
Der Argumentation des Autors liegt ein Denkfehler zugrunde.
A flaw in reasoning underlies the author's argument.
to die
'sterben' and 'zugrunde gehen' can both mean that a living being does not continue to live. 'sterben' is the normal and direct word for the end of life in humans, animals, or plants. 'zugrunde gehen' sounds heavier and, besides death, can also mean that something is completely destroyed or goes under. With people, 'sterben' is usually more natural. 'zugrunde gehen' fits better with animals, plants, groups, places, or things that are destroyed by bad conditions.

Ohne Wasser werden die Pflanzen auf dem Balkon zugrunde gehen.
Without water, the plants on the balcony will perish.
Der alte Baum ist nach dem Sturm langsam gestorben.
The old tree slowly died after the storm.