The coffin was draped in the flag of the defunct East Germany, and the Communist Party of Chile sent a wreath.
The funeral for the widow of former East German leader Erich Honecker was held on Saturday in Parque del Recuerdo cemetery in Santiago with about 50 mourners attending, including her daughter Sonja and members of the Communist Party.
They found themselves in a room where a part of the German Democratic Republic was revived for the 45 minutes it took to eulogise Margot Honecker, the iron lady of the GDR.
Margot Honecker, who died on Friday aged 89, defended the communist government of East Germany as the best system until her dying day.
Honecker's coffin was decorated with red carnations in addition to the flag of the country that ceased to exist on October 3, 1990, just under one year after the fall of the Berlin Wall.
Her death in the presence of her daughter came 24 years after she left East Germany to live in the South American country. Chilean media attributed the cause of her death to cancer.
Like her husband she remained a hardline communist to the end.
There was little mourning over Margot Honecker's passing in Berlin and victims of East Germany's communist regime expressed regret that she was never held accountable for her actions as education minister from 1963 until the fall of the wall in November 1989.
Margot Honecker defended the state security (Stasi) as legitimate and said people who were shot while fleeing were at fault for trying to climb the wall.
Her husband was put on trial in 1992 in Germany for ordering the shootings of people trying to cross the border to West Germany. He was freed in 1993 due to advanced illness, and joined his family in Chile, where he died in 1994.