Niyazov died of heart failure Thursday aged 66. He ruled the country with an iron fist for more than two decades, forcing many prominent opposition activists into exile.
Delegations from more than 20 countries, including from Russia, attended the funeral ceremony and laid wreaths at the coffin of Turkmenistan's late leader.
The Russian delegation at the funeral was led by Prime Minister Mikhail Fradkov.
"Russia perceived the sad news about the timeless death of the president of Turkmenistan with a feeling of deep grief," Fradkov said in his mourning speech. "Saparmurat Niyazov made great personal contribution to the development of friendly Russian-Turkmen relations."
Niyazov will be buried in a mausoleum, which has already been built in his home village, Kipchak.
Turkmenistan will mourn its late leader until December 30 inclusive.
