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Prof Henaghan, who is leaving to take up a position as family law lecturer in at the University of Auckland, delivered his final family law lecture at Otago on Thursday morning.
He stepped down as the dean of the faculty earlier this year, after holding the position for 19 years.
Members of the law faculty then streamed into the lecture theatre to farewell him, with dean Jessica Palmer and Society of the University of Otago Law Students president Tim Austen delivering speeches.
Prof Henaghan was made SOULS' first life member.
About 400 students formed a "guard of honour" for Prof Henaghan as he walked from the Archway lecture theatre to the Union Hall at the university, where SOULS members performed a song for him composed during the law revue this year.