Shouting anti-Pakistan slogans, several villagers burnt Pakistani flags to register their protest.
During their protest demonstrations, the villagers charged Pakistan with murdering Sarabjit.
They also lashed out at Pakistani authorities for not shifting Sarabjit to some other country for "proper treatment."
Villagers downed all business establishments in the area to protest the brutal attack on Singh by inmates in a Lahore jail.
Locals of the sleepy border village started to throng Singh's house as soon as they got the news about his death.
However, Singh's family member are camping in Delhi since yesterday and are expected to reach Amritsar by evening.
Singh died of cardiac arrest in a Lahore hospital in the wee hours today after being comatose for nearly a week following the assault by fellow inmates in a high-security Pakistani jail.
Sarabjit's wife Sukhpreet Kaur, daughters Poonam and Swapandeep Kaur and sister Dalbir Kaur, who went to Lahore on Tuesday to see him, returned to India yesterday.