The non-religious service was a celebration of Kennedy's life and included tributes from actor Noeline Brown, newsreader John Mangos, actor and Kennedy biographer Graeme Blundell, actor Jack Thompson, entertainer Bert Newton and playwright David Williamson.

More than 200 people also packed the carpark outside the Playhouse to pay their final respects to the entertainer.

The ceremony was presided over by long-time friend and Blankety Blanks panelist Stuart Wagstaff, who said the Mittagong Playhouse was chosen as the venue for the funeral because of its resemblance to the Little Theatre in Melbourne, where Kennedy began in showbusiness as an extra.

"Graham didn't want a funeral service and he didn't want any religious rites. So I think today this is a bon voyage gathering from his friends and his admirers from all over Australia in this small theatre," Mr Wagstaff said.

The ceremony featured piano from Geoff Harvey, a rendition of Love Is In The Air from John Paul Young, while Toni Lamond sang I Believe in You.

Also in attendance at the funeral were Kennedy's close friend Tony Sattler, Don Burke, Sam Chisholm, Ken Sutcliffe, Steve Vizard, Darryl Sommers, James Kemsley, Tony Barber, John Faulkner and Maggie Tabberer.

Friends sang along with a recording of Kennedy singing For All We Know as his coffin was carried out by representatives from the St Kilda Football Club president Rod Butterss, coach Grant Thomas, captain Nick Riewoldt and players Aaron Hamill, Fraser Gehrig and Luke Ball.

As the coffin was taken from the playhouse, friends honoured him with a final standing ovation.