Karimov, 78, was pronounced dead late yesterday after suffering a stroke last weekend and falling into a coma, authorities said, following days of speculation about his rapidly failing health.
An Islamic funeral for the iron-fisted leader - who dominated the ex-Soviet nation for some 27 years - was held in his home city of Samarkand, southwestern Uzbekistan, today and the country will begin three days of mourning.
Russian Prime Minister Dmitry Medvedev and the presidents of Tajikistan, Turkmenistan and Afghanistan were among dignitaries attending the memorial service on the famed UNESCO World Heritage site of Registan Square.
"Our people and Uzbekistan have suffered an irreplaceable loss," Russian news wire Interfax quoted Uzbek Prime Minister Shavkat Mirziyoyev as saying at the ceremony.
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"Death took from our midst the founder of the state of Uzbekistan, a great and dear son of our people."
Loyalist Mirziyoyev headed the organising committee for the funeral, in a sign that he could be the frontrunner to replace Karimov.
Russian premier Medvedev told the Uzbek leadership that Moscow "in these sad days" is "with you, you can have no doubt", RIA Novosti reported.
Police had cordoned off most of the centre of the city and were not letting ordinary citizens or cars through.
Despite his brutal quarter-century rule, which earned him a reputation abroad as one of the region's most savage despots who ruthlessly stamped out opposition, people in Karimov's home town mourned his passing and some youths wore black clothes.
"It is a great loss for every Uzbek. He made our country free and developed."
Crowds of people had earlier reportedly lined the road to watch and throw flowers at the cortege as it drove through the capital Tashkent.
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