Wilson, 42, worked with Newton-John on the 2011 romantic-comedy A Few Best Men.
"@therealonj, you were the most gorgeous lady inside and out, you are a true Aussie icon and to play your daughter on screen in A FEW BEST MEN was beyond an honour," wrote Wilson on Instagram, sharing a behind-the-scenes photo of herself smiling with Newton-John and costar Laura Brent.
The Senior Year actress also expressed how much Newton-John's role as Sandy in the 1978 movie musical Grease meant to her growing up in Australia.
"Seeing you star in the huge Hollywood blockbuster GREASE with your natural accent was so instrumental to me as a little girl, helping me to believe that it was possible for an Aussie girl to star in huge international musicals," wrote Wilson. "You were the reason I auditioned for my high school production of GREASE at 15 - I was only in the chorus, but it was a start!"
Icon Film Distribution/Courtesy Everett Collection A Few Best Men (2011)
Wilson — who has been open about her recent health journey — added that Newton-John, an advocate for breast cancer awareness and early detection, "tried to teach me about health years before I took it seriously."
"You were so kind to me and it was such a blessing to know you Olivia. I'll never forget us singing at the piano in our lunch break on set together - what a complete legend you are!" concluded Wilson. "I am so sad you are gone 💗 Love and Light always to you ONJ, Rebel xoxo."
David M. Benett/Dave Benett/Getty, Gilbert Carrasquillo/FilmMagic
In this week's issue of PEOPLE, some of Newton-John's closest friends remember the star as "an angel on Earth." Longtime pal, TV personality Leeza Gibbons said, "Olivia personified grace and goodness. No artifice, no affectation, just an authentic, beautiful and unending source of generosity and love. There will never be another like her."
Her Grease costar and friend John Travolta shared a message on Instagram Monday, saying, "My dearest Olivia, you made all of our lives so much better. Your impact was incredible. I love you so much. We will see you down the road and we will all be together again. Yours from the first moment I saw you and forever."
For more on Olivia Newton-John, pick up the latest issue of PEOPLE, on newsstands Friday, or subscribe here.