Fans are also welcome at the funeral, and a large screen will be erected outside the cathedral for those who can not fit inside.A private interment will follow.
Following the news that Sir Ken Dodd had died at the age of 90, Claire took to Twitter to share her devastation at the heartbreaking news.
Celebrities at the service included actors Ricky Tomlinson, Stephanie Cole and Miriam Margolyes, alongside comedians Jimmy Tarbuck, Stan Boardman and Jimmy Cricket, as well as TV executive Michael Grade.
Boardman said: "He was a Liverpool man".
Jimmy Tarbuck, who spoke before reading a passage based on Psalm 139, said: "What a ideal venue for our city's hero, perhaps our city's greatest hero and I'm pleased for Ken there's yet another full house".
"He sang Happiness because he gave happiness".
He said: "He set a standard, ladies and gentlemen, which no one has remotely approached since".
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There were some heartfelt touches, such as tickle sticks that lined the path towards Liverpool's Anglican Catherdral - a prop he was synonymous with throughout his career.
"We thank God today that he came during our lifetime".
There was more applause as the coffin was carried away, followed by Diddymen, to a private interment.
Sir Ken, one of Britain's most recognisable entertainers, was born in 1927 in the suburb of Knotty Ash.
In an address, acting dean of Liverpool Canon Myles Davies said: "Ken would be so pleased, and probably humbled too, by the way his home city and people from all over poured out their tributes to him in these last weeks".
Meanwhile, tickling sticks like those Sir Ken famously waved were positioned on statues and public buildings in the city on Tuesday in his honour.
He said it was a "wonderful tribute" to someone who had spent his life "persuading us all to exercise our chuckle muscles".
Sir Ken's friend, the producer John Fisher, described him as a "joking, jumping, singing, skipping, verbal, visual whirlwind of laughter".