A choir of survivors from the attack were among those who performed, with one young member of the group in tears during the emotional performance.
Manchester is marking the day with a series of events including the memorial service at the cathedral and a musical tribute in the evening.
Noel Gallagher appeared on screen to introduce Don't Look Back In Anger - the track that became so popular in the days after the attack as a song of hope and defiance.
His interactions have been captured by artist Ghislaine Howard, with her paintings on show in the city.
Elbow's One Day Like This followed, then Grande's One Last Time.
It's been one year since a bombing took the lives of many Ariana Grande fans in England.
Bells on the city hall and churches rang out at 10:31 p.m., a year since the bomb exploded.
Prime Minister Theresa May and Prince William joined families of the victims - seven of whom were under 18 - for the cathedral ceremony to remember the May 22 Manchester Arena attack during an Ariana Grande performance.
22 innocent people were killed and 139 were wounded, more than half of them children.
She tweeted: "Thinking of you all today and every day".
The American singer Grande, who visited the injured in hospital in the wake of the bombing and returned two weeks later to host a fund-raising concert, wrote on Twitter: "Thinking of you all today and every day I love you with all of me and am sending you all of the light and warmth I have to offer on this challenging day".
Prince Harry, carrying out his first public engagement as a married man, also remembered the victims during a speech in London.
Prayers of goodwill were also read out by school pupils on the night and people were able to add their thoughts to a memory tree near the park cafe.
Some laid bouquets of flowers in St. Ann's Square.
Ariana had previously taken to social media earlier in the day to voice her support for her fans in Manchester. Others left hand-written notes on Japanese maples that have been planted to form a "Trees of Hope" trail through the city.