Michael Madsen Applauded Quentin Tarantino for Firing Lawrence Tierney

Quentin Tarantino paid homage Friday to the late actor Michael Madsen -- remembering the time Michael applauded him for firing Lawrence Tierney from "Reservoir Dogs"!

The famed director took center stage at a private memorial he hosted at L.A.'s Vista Theatre ... where he regaled the crowd with stories about his ol' pal Michael, who appeared in several of his movies, including "Reservoir Dogs" and "Kill Bill."

But it was Tarantino's story about the former film that really exemplified just who he was as a person.

Check out our clip ... QT is all smiles as he fondly remembers "crazy man" Lawrence wreaking havoc on the set of 'Dogs' -- and being so arrogant he decided to can him. Later that night, after an exhausting week of filming with Lawrence -- who died in 2002 -- Quentin said Michael called to say how much he respected the first-time director for taking a stance against his costar.

As you know, Quentin and Michael worked on several projects together, including "Once Upon a Time ... in Hollywood," "The Hateful Eight," "Sin City" and more.

After the memorial, Tarantino and a bunch other big name celebs left together and were snapped by paparazzi as they walked out of place. Among the stars who attended were Sean Penn and Daryl Hannah.

While Quentin was upbeat in spirit as he remembered his collaborator and friend, we're told by an attendee the memorial was emotionally charged ... with plenty of tears shed.

There was also a showcase of various memorabilia items of Michael's from over the years, such as action figures, a handwritten note, and his photography book, "Signs of Life."

We broke the news -- Michael was found unresponsive in his Malibu home in early July by his assistant and longtime friend. We were told he had just gotten the all-clear from doctors after undergoing a PET scan just days prior.