The facility in Knockeendubh, which cost Kerry County Council €120,000 to build, has 100 niches for the placement of ashes.
Cathaoirleach of the Killarney Municipal District, Cllr Brendan Cronin says the vital infrastructure was developed in recognition of the increased popularity of cremation.
Councillors recently agreed the policy and guidelines for the columbarium wall; concerns were raised by some councillors about the cost of each individual niche which is €1,200.
Anyone wishing to use the new facility can contact the Burial Grounds Section of Kerry County Council.