Mourners gathered at Ainley Top where Mr Yaqub, 28, from Crosland Moor, was shot following a police operation on Monday evening.
One mourner, Imran Bashir, 29, from Crosland Moor, said he was pleased with the turnout and that it was peaceful.
Mr Bashir, who had been friends with Mr Yaqub for more than 10 years, said: “He did a lot for the community and was a good role model to me.
“I think it’s a very good turnout and I’m glad it’s been peaceful. Best wishes to the family.”
Mr Yaqub’s parents Safia and Mohammed Yaqub turned up and were supported by friends and family as their tears flowed.
Cars were parked in the road and on the central reservation as the number of mourners grew.
Meanwhile politicians have united to appeal for communities across West Yorkshire to remain calm and to allow investigators to continue their inquiries to determine how and why Mohammed Yassar Yaqub was shot dead by police.
Labour MP Naz Shah and the county’s police and crime commissioner have appealed for people to stay calm following violence in Bradford on Tuesday night which followed a street protest over the death of Mr Yaqub.
Mark Burns-Williamson, West Yorkshire’s Police and Crime Commissioner, said it was important to allow the Independent Police Complaints Commission to carry out its investigation to establish exactly what happened.
He vowed to work to ensure the “necessary policing presence” was provided to reassure communities.
Labour West MP Naz Shah, in whose constituency the protest took place, also called for calm.
It followed a protest on Leeds Road, Bradford in which police vehicles and others were damaged.
A video posted on social media shows young men with their faces covered causing damage to a marked police car.
West Yorkshire Police said in a statement that a small number of people had engaged in disorder which had caused damaged to vehicles belonging to police and the public.
The spokesman said no-one had been hurt.
Police are appealing to anyone with footage of the disorder to get in touch.
He said: “I can’t believe that the police could do that to someone, to someone sat in the car. My wife said: ‘This is what you see in America.’ I have my wife on my shoulder asking why did they shoot him?
“He had been with us only the night before. He had a cold and my wife was rubbing Vick’s on his chest. We thought it would be the start of a new year but it was not to be.”
Earlier today police confirmed that two of the five men arrested in the operation at Ainley Top have been bailed. A district judge has granted police an extra 36 hours to question the three other men.
Police also confirmed that a flat in Parkwood Mills on Stoney Lane in Longwood was raided as part of the investigation.
The Force declined to confirm that Mr Yaqub was a known drug dealer. There are several reports online which suggested he was.
The IPCC, which is looking into the matter, has confirmed that a gun was found in Mr Yaqub’s car following the shooting.