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Jackson's daughter Paris, 11, fought back tears to describe him as "the best father you could ever imagine".
The singer's coffin was placed in front of the stage during the event at the Staples Center in Los Angeles after an earlier private funeral.
Lionel Richie, Stevie Wonder and Mariah Carey paid tribute before the family joined a sombre finale on stage.
Jackson's siblings, children and parents took part in a chorus of We Are The World and Heal the World.
His family, with the brothers each wearing a single jewelled glove in Jackson's honour, then took to the podium.
Michael Jackson's brothers wore his trademark single gloves
Comforted by aunts and uncles, Paris stepped up the microphone. "I just wanted to say, ever since I was born, Daddy has been the best father you could ever imagine," she said.
"And I just wanted to say I love him so much."
Marlon Jackson spoke of the troubles his brother faced. "We will never, never, understand what he endured," he said.
"Not being able to walk across the street without a crowd gathered around, being judged, being ridiculed. How much pain can one take?
"Maybe now, Michael, they will leave you alone."