Bianca Jones died in a Bangkok hospital on November 21, while her best friend Holly Bowles died a day later in another hospital in Thailand's capital.
The 19-year-olds from Beaumaris in Melbourne's southeast had been on holiday in Laos and were among six foreign nationals who died in a mass drink-spiking event in the popular tourist town of Vang Vieng.
Guests streamed through the grounds of Mentone Girls Grammar on Friday for Ms Jones' funeral, turning it into a sea of rainbow after they were asked to wear colour as a mark of how she lived her life.
People arrive for Bianca Jones' funeral service at Mentone Girls' Grammar in Melbourne. (Con Chronis/AAP PHOTOS)
Ms Jones' family had thanked Australians and the local community for the outpouring of love, support and compassion during an extremely difficult time, school principal Natalie Charles said.
"Your kindness has been a source of strength and comfort for our family," Ms Charles said, reading a statement on behalf of her family.
"Today is a profoundly significant day as we come together to honour Bianca's life and to say our final goodbyes.
"The immense love shown by so many is a testament to the profound impact she had reflected in the scale of today's farewell."
Mentone Girls Grammar principal Natalie Charles said the funeral was a tribute to Bianca's impact. (Con Chronis/AAP PHOTOS)
Colourful bouquets, including one from Attorney-General Mark Dreyfus, laid between two flagpoles with flags lowered at half mast in a show of respect for Ms Jones.
Deep tones of an organ filled the air as angelic hymns of Ave Maria flowed out from the memorial hall during the service.
The Jones family asked supporters to give to a GoFundMe fundraiser in lieu of flowers, which was set up to relieve the teens' families of their financial burden as well as fund efforts on education campaigns to raise awareness of methanol poisoning.
The teens' families said they remained committed to raising awareness for their and others impacted by the poisoning.
"Their legacies are far too important to be forgotten, and our children's lives too important not to protect," the Jones family said.
"We hope their stories drive change and inspire efforts to save lives to support our ongoing mission."
The pair did not leave their dorm at the Nana Backpacker Hostel 24 hours after going to Jaidee Bar and reported feeling unwell on November 13, before being rushed to hospitals in Bangkok.
Thai authorities have confirmed Ms Jones died of "brain swelling due to high levels of methanol found in her system".
Both girls' bodies were flown back to Australia a week after their deaths.
At least eight people, believed to be hotel staff and management, have been detained over the deaths of an American man and two Danish women in Van Vieng, according to local media.
Australian Federal Police have offered to help the Laos probe, with the federal government making it clear to officials they expect a thorough and transparent investigation.
A funeral service will be held for Ms Bowles on Monday.
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