In his later years, Duignan mostly played in and around Drumshanbo, Keadue and Arigna with fiddler Séamus Horan and bouzouki player Ciarán Emmett.
He was buried with his flute in the Church of the Immaculate Conception's adjoining cemetery in the middle of Arigna alongside other immediate family members.
An annual tribute weekend featuring many bands and players is held in Drumshanbo in late January.
A memorial plaque in honour of Duignan is displayed in the centre of the town in the Main Car Park.
Among a younger generation of flute and tin whistle players to cite Packie's influence are Catherine McEvoy and Mary Bergin.