Georgina Callander, 18, was among 22 people who died in the suicide bombing at Manchester Arena on 22 May.
Hundreds attended the ceremony at Holy Trinity Church in Tarleton, Lancashire.
Attendees wore "a touch of yellow" at the request of her family, who thanked mourners for their "sympathy and support".
Parents Lesley and Simon, with brothers Daniel and Harry, laid flowers in the village before the funeral.
Shops were closed as a mark of respect as the funeral cortege made its way through.
Bishop John Goddard said the service was a chance to "put aside hatred and look to embrace love and hope".
A private burial service was held after the church ceremony.
Ms Callander was described as "beautiful" by friends who said on social media that she was one of the first people taken to hospital after the attack.
She was said to be a huge fan of 23-year-old Grande and was pictured with her in 2015.
The final song played at the service was the US singer's hit One Last Time, which has become an anthem for fans since the attack.
Grande performed an emotional rendition of the song at the One Manchester benefit concert on 4 June.

Staff in Jobcentres, banks, building societies and utility companies in England could also be trained to spot - and counsel - vulnerable people.
The ideas are raised in a consultation paper on suicide prevention.
The Samaritans said councils should have a mandatory responsibility to try to prevent suicides in their areas.
Some 4,400 people killed themselves in England in 2009.
Claire Wylie, head of policy and research at the Samaritans, told the BBC News website that many suicide attempts were made on impulse, so trying to restrict access to potentially lethal means was important.
"We know that people who are feeling suicidal are often very ambivalent about actually ending their lives," she said.
"If you can interrupt them at that moment you can prevent them going ahead."
Preventing deaths by jumping is a key aim of the consultation and it suggests a number of ways of doing that.
They include:
Overall, the number of suicides has steadily fallen in recent years, but the number of deaths on Britain's rail network had been rising until last year.
However, specialist training from Samaritans for rail staff was key to an 11% fall in 2010, according to the Rail Safety and Standards Board.
London Underground is also rolling out training to all of its staff after a pilot project at one station close to a psychiatric inpatient unit helped reduce suicides.
The government wants to see that sort of training given to a much wider range of people who come into contact with individuals who could be vulnerable because of their social or economic circumstances.
Jobcentre and benefit office staff, as well as employees in banks, building societies and utility firms are among those suggested in the consultation.
Ms Wylie said: "More training for all frontline staff is really important, but that needs investment and money is tight.
"In general, we really welcome the government's strategy, but there needs to be a lot more actual commitment to action.
"There's also an issue about local implementation because things like putting up signs and barriers depend on the individual local authority actually caring about suicide prevention.
"We would like to see a mandatory responsibility placed on local authorities to take this seriously."
The consultation closes on 11 October.

The 40-year-old 14-time major champion twice had back surgery during 15 months out before returning in December, when he tied for 15th at the 17-man Hero World Challenge.
Over the next five weeks he plays four full-field tournaments.
"That is a concern, no doubt about it, but I'm also looking forward to it. I've sat out long enough," Woods said.
"I've gone through some pretty tough lows. There were points when I didn't know whether I would swing a golf club again.
"But I do feel good about it. I just need to get out there and do it and see what happens."
Woods begins his 2017 season at the Farmers Insurance Open in San Diego, which begins on Thursday.
He will then play at the Dubai Desert Classic from 2-5 February, followed by the Genesis Open at Riviera from 16-19 February and the Honda Classic in Palm Beach Gardens from 23-26 February.
"I've got my body in a pretty good state where I feel I can handle that workload, but I've still got to go out there and do it," he added.
"Feeling good about it and doing it are two totally different things."
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Streets of a village were decorated with pink and yellow ribbons for the funeral an Ariana Grande "superfan" killed in the Manchester terror attack.
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