By 7 am the line snaked around the KFC Yum! Center, the large sports arena where the ceremony will be held on Friday.
Ali, whose remarkable boxing career and civil rights activism made him one of the most indelible figures of the 20th century, died last week at age 74 after a decades-long battle with Parkinson's disease.
Louisville, the largest city in the southern state of Kentucky and home to 600,000 people, will play host tomorrow and Friday to a mass public celebration of Ali's life.
"I just want to be part of it," she said.
Ten ticket booths have been set up to hand out four free tickets per person.
Some people spent the night in line on camping chairs and wrapped in blankets to make sure they got tickets.
"Muhammad Ali was such an amazing person, not only as an athlete but really a humanitarian. He was the people's champion and we, being from Louisville, feel like family to him," said Jessica Moore, the local county's assistant district attorney.
Former US president Bill Clinton and comedian Billy Crystal are among high-profile speakers scheduled to deliver eulogies. A crowd of 15,000 people is expected at the sports arena.
President Barack Obama however will be absent, remaining in Washington for the high school graduation ceremony of his eldest daughter, Malia.
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