Tupac Cremated and Smoked by Friends, Relatives After Death

Suge Knight told us a WILD story about Tupac, and it ends with his ashes being rolled up in a blunt.

Suge, who was with Tupac in Vegas when the rapper was shot, tells TMZ ... immediately after Tupac died, his mom wanted him cremated.

Suge says someone put him in touch with a guy, late in the evening, from some sort of funeral home. He asked the guy to cremate Tupac, but the man said he was busy for the next few days.

Suge got the guy's address and went over to the guy's house with 2 bags -- one with $200,000 in cash, and the other with $1 million in cash. Suge offered the guy the bag with the $200K, but he said he wouldn't cremate Tupac that night. So Suge says he upped the ante and offered both bags. He says the guy was staring down $1.2M and agreed to cremate Tupac right then and there.

As for what happened to Tupac's ashes, Suge said the rapper's mom had people come to the Vegas hotel room where she was staying, and they rolled his ashes into several blunts and they smoked him.

For his part, Suge says he told Tupac's mom he was on probation and felt smoking Tupac might be a violation, so he passed.