Crowds gathered in Riverside Park, Newark - the home town of little Louisiana Brooke-Broadley - to pay the special tribute on Saturday afternoon.
Louisiana, 2, was killed in a blaze at Sealands Caravan Park in Ingoldmells where she had been on holiday with her family, on Monday, August 23.
Her mother, Natasha Broadley, and her three eldest children survived the blaze and were treated at Boston Pilgrim Hospital.
After the balloon release, Louisiana's nan shared the video on Facebook and commented: "Thank you so much for the amazing turnout for my precious granddaughter.
"Cannot remember who was there as was overwhelmed. Best send off ever for our wee wee."
A GoFundMe page set up after the fire to raise money for the family has raised just over £18,000 with donations still rolling in.
To make a donation visit here.