Actors Brad Pitt, Christian Bale and Josh Brolin attended as well as singers Pharrell Williams and Courtney Love.
Dozens of fans congregated outside the Hollywood Forever Cemetery to say goodbye to the grunge rocker.
Cornell, who killed himself earlier this month, battled throughout much of his career against drug and alcohol addiction in addition to depression.
The ashes of the 52-year-old Soundgarden and Audioslave lead singer were interred in the "Garden of Legends" alongside Johnny Ramone at the cemetery, which describes itself as "the resting place of Hollywood's greatest stars".
Eulogies were delivered by Brolin and the singer's former bandmates Kim Thayil, Tom Morello and Matt Cameron.
A version of Leonard Cohen's Hallelujah was also performed on an acoustic guitar.
Cornell's widow Vicky and his three children were among hundreds who gathered at the open-air ceremony. Cornell was cremated at a far more low-key event on Tuesday.
Mourners later visited his grave to the accompaniment of his best known Soundgarden song, Black Hole Sun.
Friday's funeral programme featured a quote from Cornell: "We are neighbours in a modern world where proximity is relative and the threshold to our hearts moves outside time and space."
Fans were allowed to watch the proceedings from a distance alongside the media - they were later allowed to visit his grave.
Cornell was found dead in his hotel room on 17 May after performing a show in Detroit. Officials later confirmed he had hanged himself.
Singer Alice Cooper called him "the best voice in rock and roll" while Sir Elton John said he was "a great singer, songwriter and the loveliest man".
Friends and family of rock singer Chris Cornell have paid their respects at his funeral service in Los Angeles.