Vale, Malcolm Fraser.
The 84-year old died last week after a brief illness.
Australia’s 22nd prime minister, Mr Fraser first entered Parliament in 1955 as its youngest MP and spent nearly 20 years as a backbencher and in the ministry.
He became opposition leader in 1975, facing off against Gough Whitlam before becoming prime minister in the wake of Mr Whitlam’s dismissal.
Despite his controversial rise to power, Mr Fraser went on to win the next three elections.
Related content: Tributes flow for Malcolm Fraser, 1930-2015.
Prime Minister Tony Abbott has attended the service, along with former prime minister John Howard.
A number of readings, speeches and musical performances were conducted by Mr Fraser’s family.
His granddaughter, Hester, sung an emotional song of her own composition.
“You are not here for the universe to roam … but the magnanimity of your ideas will never die,” she sung.
Scots’ Church is Melbourne’s oldest Presbyterian Church.
Members of the public were welcome to attend today’s service, which began at 11:00am (AEDT), but seating was limited due to the size of the church.
Prior to the service, dozens of members of the Vietnamese community gathered outside the church to pay their respects to the leader.
Many laid wreaths and carried signs that displayed the message “Farewell to our true champion of humanity: Malcolm Fraser”.
“We were refugees from Vietnam and my family arrived in Indonesia as refugees and thanks to Malcolm Fraser’s policy at the time we were welcomed to Australia as refugees in 1979,” Vietnamese community leader, Phuong Nguyen, said.