The song was performed by the Meshki Pushan (Men in Black) band, which is led by his fellow singer Reza Sadeqi, at Tehran's National Grand Hall on Wednesday evening.
The song was originally recorded in Abdollahi's second album "I Love You."
Sadeqi thanked Iranian cultural officials for dedicating a section for pop singers in the Fajr music festival.
This is the second time the festival allocated a section for pop music, which was banned until the early 1990s after the 1979 Islamic Revolution in Iran, Tehran Times reported.
Iranian pop singers were first allowed in 1998 to participate in the festival, which is Iran's most important music event.
Sadeqi, 30, shot to fame after performing "The Black Shirt" and "Black Is the Color of Love". Wearing black shirts has become Meshki Pushan's trademark.
Abdollahi died mysteriously in December 2006 after he went into a coma for a month. He had allegedly been injured in a quarrel with a religious sect in his hometown of Bandar Abbas.
His death was attributed to Wahhabis, however no Iranian official source corroborated the report.
He had performed a number of songs commemorating the Holy Prophet Muhammad (S), Imam Ali (AS), and Hazrat Fatima (SA).
An ambiance of Bandari music, which is common on the Persian Gulf coastal cities, dominates his works.