Quranic figures and reciters, his family and friends attended the ceremony, in which several Qaris recited verses from the Holy Quran.
Also, a recorded recitation of the Quran by Hamid Reza Abbasi was played during the ceremony.
Abbasi died in a hospital in the holy city of Mashhad on Tuesday.
He, along with another internationally-known Iranian Qari, Hamid Shakernejad, had been seriously injured in a car accident last week.
The accident happened when they were on their way to Mashhad returning from a trip to the central city of Semnan to serve as arbiters in a Quran competition there.
Born in 1976 in Zanjan, west of Tehran, Abbasi won a number of titles in international Quran competitions, including those in Kuwait and Malaysia.
He was an honorary Quran reciter at the holy mausoleum of Imam Reza (AS) in Mashhad.