Karimov, 78, was pronounced dead late Friday after he suffered a stroke last weekend and fell into a coma, authorities said, following days of speculation that officials were delaying making his death public.
The Islamic funeral for the strongman -- who dominated the ex-Soviet nation for some 27 years -- was being held in his home city of Samarkand, southwestern Uzbekistan, on Saturday and the country will begin three days of mourning.
Despite his brutal quarter-century rule, which earned him a reputation abroad as one of the region's most savage despots who ruthlessly stamped out opposition, people in Karimov's hometown mourned his passing and some youths wore black clothes.
"When we found out about his death, all my family -- by wife, my son's wife, the children -- we were all crying, we couldn't believe it," one local man, 58, told AFP, refusing to give his name.
State television in the tightly-controlled nation earlier reported the coffin had arrived by plane in Samarkand accompanied by Karimov's widow and younger daughter.
Crowds of people had earlier reportedly lined the road to watch and throw flowers at the cortege as it drove through the capital Tashkent.
Authorities said Karimov's coffin would be displayed in a city square for people to pay their last respects before he is buried in a nearby cemetery later Saturday next to other family members.
Eyewitnesses told AFP that they had seen the vehicles carrying the coffin head towards Samarkand's UNESCO World Heritage site centre but that the event was open only to guests with official invitations.
Loyalist Prime Minister Shavkat Mirziyoyev heads the organising committee for the funeral, in a sign that he could be the frontrunner to take over long-term from Karimov.
Under Uzbek law, senate head Nigmatulla Yuldashev has now become acting president until early elections are held.
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