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Published 15:17 25 Nov 2013 GMT
Updated 13:11 11 Jun 2015 BST
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Marie Mullen, a founding member of the theatre, commented: "It keeps Mick alive in our hearts as we go on with our work."
Mick, Garry Hynes and Marie Mullen founded the company in 1975 and Mick appeared in many productions right up until his final Druid appearance in 2009.
In attendance members of his family including his wife Peige, his sons Darach and Maghnus; Druid co-founders Garry Hynes and Marie Mullen and some of the many friends and colleagues he met through his acting career as well as those friends with whom he shared his love of music.
Although he was best known for his role as Miley in Glenroe, Lally's stage career was hugely prolific. He was also involved in films such as Alexander and The Secret of Kells.
Lally died in August 2010 following a battle with emphysema.Entertainment
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