The service was be relayed via Big video screens to those outside the St Marys Church on the high street.
The first hymn - Lead Us Heavenly Father Lead Us - was sung at his wedding to wife Rita, whom he first declared his love for aged 13.
Joanne the daughter of Graham Taylor spoke a funeral giving her memories and what she lived about her dad.
BBC commentator John Motson read a tribute from ex-Watford owner Sir Elton John who was not at the funeral.
We were like Batman and Robin: Sir Elton John pays tribute to ex-England manager Graham Taylor as the game's greats including Sir Alex Ferguson and Trevor Brooking pay their final respects
Sir Alex Ferguson, Arsene Wenger, Former England players John Barnes, Luther Blissett and David Platt and Watford captain Troy Deeney were among those who gathered at the funeral in Watford.
BBC Football | Graham Taylor funeral: Crowds gather for England boss goodbye pic.twitter.com/UPE5aqnnXq— Watford London News (@WatfordLondon) February 1, 2017
For those who are not present on the day, a tribute event is in the planning stages to be held at Vicarage Road in the summer - shortly after the conclusion of the Premier League season, which finishes on May 21.