The US military gave full burial honors to the 24-year-old Filipino-American and posthumously conferred on him the Bronze Star, its fourth highest award for gallantry in action.
The US army also awarded Bangayan the Purple Heart and Global War on Terrorism Expeditionary medals.
Tears fell as the Sudipen townsfolk joined the funeral cortege that brought his remains to the San Francisco Norte municipal cemetery. US army honor guards trailed his casket.
US Embassy charge daffaires Joseph Mussomeli said, "The US government greatly regrets the untimely death of this young native of the town of Sudipen. It is a tragic loss for his family, his friends, and both the United States and Philippines."
Bangayan, Mussomeli said, "went to Iraq to help the Iraqi people rebuild their country after three decades of cruel oppression. It is unfortunate that there are those who violently oppose establishing a secure and democratic Iraq."
He added: "Bangayan embodied the close relationship of the United States and the Republic of the Philippines. Together, we are fighting the global war on terrorism and are now bringing Iraq the stability and peace it needs to build a free and democratic society."
Mussomeli said Bangayan gave his life so that others could be free. "There is no higher sacrifice," he said.