Kanhaiya Lal, whose brutal murder triggered communal tension here, was cremated in the presence of a large number of people even as curfew remained clamped in parts of the city.
A large number of police personnel were deployed during the funeral procession to maintain law and order, officials said.
The funeral procession was taken out peacefully.
Lal, a tailor, was on Tuesday murdered by two men who had posted videos online that said they were avenging an insult to Islam.
The incident triggered stray cases of violence in Udaipur and curfew was clamped in seven police station areas of the city.
Some people also shouted 'Modi-Modi' slogans at the funeral ground after the cremation.
The funeral procession began from Lal's residence at sector 14 and reached Ashok Nagar funeral ground. A large number of people participated in the procession and reached the funeral ground on motorcycles and cars with some of them raising slogans demanding death penalty for the accused.
Some of them were also carrying saffron flags.
People raised 'Kanhaiya Lal Amar Rahe' slogans as the funeral pyre was lit.
A day after the incident, curfew remained imposed in seven police station areas of the city on Wednesday and mobile internet services suspended across all 33 districts of the state, officials said.