Mr Albanese attended a ceremonial sing-sing at Boram airport, in Wewak, on Friday ahead of laying a wreath at the resting place of the PNG leader who died in February 2021 aged 84.
He also planted a coconut tree in the Somare garden and had morning tea with the Somare family.
Mr Somare was the Pacific country's first prime minister and had a close relationship with former Labor leader Gough Whitlam after the pair delivered self-government for PNG in 1972 and full independence in 1975.
"Sir Michael Somare will live on through his contribution to Papua New Guinea as an independent, strong, vibrant nation into the future," Mr Albanese said.
"Our futures, just like our paths, are intertwined. We are connected. The stronger and more secure, and more prosperous Papua New Guinea is, the stronger and more secure and prosperous Australia will be and the same applies the other way around.
"Which is why there is no more important relationship between Australia and Papua New Guinea."
Mr Albanese gave the Governor of East Sepik Province Allan Bird an artwork by Lloyd Jampijinpa Brown depicting a "Yankirri Jukurrpa" (emu dreaming).
The Somare family were given a set of four framed photos of Sir Michael taken during various visits to Australia along with archive video footage for display in a planned Somare museum.
Mr Albanese will later lay a wreath at the Japanese memorial peace park in Mission Hill and meet officers of the 2nd Battalion Royal Pacific Islands Regiment, before heading back to Australia.
Wewak, the capital of PNG's East Sepik region, was the site of significant bombings against the Japanese in World War II.
Mr Albanese was accompanied in Wewak by his PNG counterpart James Marape and senior ministers.
The term sing-sing refers to cultural song and dances performed on special occasions such as visits.
As many as 100 regional, provincial, and national tribal dance groups often travel for days by foot, boat, bus or truck to attend the annual events, each with their own style of dance and traditional body decoration.
On Thursday, Mr Albanese and Mr Marape agreed to a joint commitment for a security treaty between the two countries, which is hoped to be negotiated by the end of April and signed in June.
In a statement, the leaders said the new deal would "reflect the evolving nature of our shared security interests, recognising that non-traditional security challenges, such as climate change, cyber security, and economic elements of statecraft, affect our strategic environment".
The Australian prime minister was the first foreign leader to address the PNG parliament.
includes pool copy from Tom McIlroy, AFR
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