The 21-year-old was stabbed to death last Tuesday.
Her partner, Matakaua Rouvi, known as Karl Rouvi, has been charged with her murder, and has been remanded in custody until February 12.
Her coffin, covered in a flax and feather cloak, was adorned with colourful bouquets.
The service, conducted mostly in Maori, was emotional and portrayed the shock felt about the circumstances and timing of her death.
Those gathered were told how she was a caring, gentle person who was a wonderful mother to her 3-year-old daughter Jahnae.
Colleagues at Cadbury, where she worked, spoke of her diligence, kind nature and willingness to help.
The mourners were also encouraged to let love, peace and harmony rule in the home.
They were told families and the community needed to take responsibility to stop domestic violence.
Some of Mr Rouvi's family members were present at the funeral.
They expressed their condolences to the family and their grief for a lost friend.
Miss Aranui-Palmer was cremated at a private ceremony.
