Thousands of people have marched in northern Israel to farewell exchange student Aiia Maasarwe, who was killed in Melbourne last week.

Key points: Aiia Maasarwe was killed in Melbourne last week, while she was on exchange from her university in Shanghai

Aiia Maasarwe was killed in Melbourne last week, while she was on exchange from her university in Shanghai Ms Maasarwe's family said the large turnout to her funeral was touching

Ms Maasarwe's family said the large turnout to her funeral was touching Some mourners marched with banners denouncing violence against women

The 21-year-old's body was brought from the airport to her family home in the Arab-Israeli town of Baka al Gharbiyye, so her mother and sisters could say a final goodbye.

Ms Maasarwe left this house to study and see the world.

She returned in a casket, unloaded from an ambulance in the driveway and carried by a crowd through the large front window.

After half an hour, the casket was passed back to the waiting crowd, who carried it in procession through the streets to the mosque.

Ms Maasarwe's father said he wanted his daughter to be remembered as happy, optimistic and helpful. ( Instagram: Ruba Photography )

Shops closed and streets were blocked off so all residents could take part.

Ms Maasarwe's cousin Sharef Maasarwe said the large turnout was touching.

"I mean everybody's here, this village only has a couple of thousand people, so it's really incredible," he said.

"We're so grateful as a family, we're very thankful for everybody being here in support."

Ms Maasarwe's casket was carried through the streets to the mosque. ( ABC News: Eric Tlozek )

Aiia Maarsawe was a prize-winning student and children from her old school marched with banners denouncing violence against women.

Younger children at a primary school held pictures of the 21-year-old against the fence as the mourners walked past.

Shops closed and streets were blocked off so all residents could pay their respects. ( AP: Ariel Schalit )

Ms Maasarwe's father Saeed Maasarwe said he wanted his daughter to be remembered as happy, optimistic and helpful.

"She smiled, she's positive and she wanted to help all the people and to support all the people and she wanted to see the world is beautiful and that life is beautiful," he said.

Ms Maarsawe was on a student exchange in Melbourne from her university in Shanghai when she was killed.

Thousands grieved as a casket holding Aiia Maasarwe's body was passed through the streets. ( Reuters: Ammar Awad )

Her father said she was loving life in Australia.

"She liked the people and the country very much there in Australia," he said.

"I want to appreciate all Australian people and Government for giving my daughter five beautiful months in Australia. I know the end was a very big tragedy, very big trouble for us, but really I appreciate the beautiful five months she had in Australia."

Ms Maasarwe's family will now spend three days at home to mark a traditional mourning period.