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.
Streets of a village were decorated with pink and yellow ribbons for the funeral an Ariana Grande "superfan" killed in the Manchester terror attack.