Lecretia Seales' family won't appeal a High Court decision rejecting her bid for the right to die on her terms.
The Wellington lawyer and right-to-die activist died from a brain tumour in June, just hours after the ruling was delivered.
Parliament's health select committee has since decided to hold an inquiry to find out what people think about voluntary euthanasia.
"Although the ruling didn't include a declaration of inconsistency, which we felt would have been appropriate, the findings in the judgment are firm enough that Parliament is still obliged to look at the law," her husband Matt Vickers said in a statement.
"A number of facts in Lecretia's case were settled and conceded in the judgment, and on the basis of these facts, and even in the absence of a declaration of inconsistency, Parliament has a moral and democratic responsibility to review the issue."
Mr Vickers says despite the ruling going against her, Ms Seales' family are "grateful" the judge was able to come to a decision before she died, "a monumental task given the breadth and controversy of the issue".
"Although we feel an appeal would prove Lecretia right on a point of law, it is more important to us now to achieve legislative outcomes for the benefit of all New Zealanders than win an argument in the courts for someone who can sadly no longer benefit from a positive outcome."
A petition with more than 9000 signatures was presented to Parliament in June calling for an inquiry.