The mourners were from Sopore and adjoining areas and thronged the funeral prayers of Abdul Majeed Mir, who was killed in a 20-hour long gunfight in Nowpora village of Sopore on Tuesday.
Security forces did not intervene to stop the funeral procession. The militant was buried in his native Tujjar area.
The mourners kept shouting pro-independence and pro-Islam slogans.
Also killed with Mir was a top commander of the Lashkar-e-Taiba (LeT) identified as Abu Maaz, a foreigner.