The coffin of the media mogul, adorned with white and red roses, was driven through the city from his villa in Arcore to the city’s Duomo, with mourners clapping and waving along the route.
It was then carried into the cathedral, escorted by a guard of honour, as his family walked behind.
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Thousands of the tycoon’s supporters, including a delegation from his Monza football club, watched on giant screens set up in the square as Archbishop Mario Delpini led the ceremony for Berlusconi, who died on Monday aged 86.
“When a man is a politician, then he tries to win. There are those who exalt him and those who cannot stand him,” Delpini said in his homily.
“When a man is a protagonist, then he is always on stage. He has those who applaud him and those who detest him,” he said.
“But in this moment of farewell and prayer, what can we say about Silvio Berlusconi? He was a man: a desire for life, a desire for love, a desire for joy,” he added.
Berlusconi, adored and loathed by Italians in equal measure, had been ill for several years, though he remained the official head of his right-wing Forza Italia party, a member of Prime Minister Giorgia Meloni’s coalition government.
Italian President Sergio Mattarella, Meloni and fellow coalition partner Matteo Salvini, head of the far-right League, were at the funeral, while the European Union was represented by its economy commissioner Paolo Gentiloni.
Hungarian Prime Minister Viktor Orban was also present, along with Qatar’s emir Sheikh Tamim bin Hamad al-Thani and Iraqi President Abdel Latif Rashid.
He counted President Vladimir Putin among his friends, but the Russian leader is subject to an international arrest warrant and could not travel to Italy.
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The longest-serving premier in Italy’s post-war history, and re-elected to the Senate last year, Berlusconi was known for making numerous controversial and offensive statements on the international stage.
Berlusconi is survived by his 33-year-old girlfriend, Marta Fascina, with whom he held a fake wedding last year and who was at his bedside as he succumbed to a rare type of blood cancer.
She was joined in the front pews by Berlusconi’s two ex-wives and five children, some of whom helped run his empire, recently estimated to be worth around $7 billion.
“You were a great man and an extraordinary father to our children,” his first wife Carla Dall’Oglio wrote in a eulogy on Tuesday.
Flags were lowered to half mast on all public buildings from Monday in tribute to a leader whose influence extended well beyond politics, thanks to his extensive TV, newspaper and sporting interests.
Parliament was suspended for seven days and the government declared a national day of mourning for Wednesday – the first ever for an ex-prime minister.
The decision was criticised by Berlusconi’s detractors, who accused him of cronyism, corruption and pushing through laws to protect his own interests.
Senator Andrea Crisanti said he was “strongly against” such national honours for “someone who had no respect for the state”, pointing to Berlusconi’s definitive conviction for tax fraud in 2013.
Rosy Bindi, former head of the Antimafia Commission, said it was “inopportune” for “a person as divisive as Berlusconi” and the Repubblica daily said the “institutional shutdown” was “extreme” and compared it to Britain’s protocol for Queen Elizabeth II’s death.
Democratic Party MEP Alessandra Moretti said: “With all due respect … it seems to me very over-the-top to freeze parliamentary work for seven days. I think Italians find it hard to understand this decision, especially given that there are numerous dossiers awaiting urgent responses, first of all the Recovery Plan.”
Berlusconi built a pharaoh-inspired marble mausoleum at his villa in Arcore, near Milan, to house his family and friends when they die.
At the moment it lies empty. It was not yet clear if Berlusconi’s family had requested the necessary permission to bury him there.
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