Ceremonies in Garhi Khuda Bakhsh, southern Pakistan, are expected to include prayers, poetry and speeches.
Mrs Bhutto was killed in a suicide bomb and gun attack in Rawalpindi, near Islamabad, after an election rally.
UN Secretary General Ban Ki-Moon says he expects an independent inquiry into her death to be set up soon.See Video Clip;
http://news.bbc.co.uk/1/hi/world/south_asia/7800849.stm
Pictures with video; http://www.youtube.com/watch?v=nL5AtdMcUEg
Heavy security
People from all over Pakistan have been travelling by train, bus, car and even on foot to the Bhutto family mausoleum in Garhi Khuda Bakhsh.
The tyrants and the killers have killed her but they shall never be able to kill her ideas Pakistan's President Asif Ali Zardari |
"She gave her life for the people of this country, so we can walk a few miles to pay homage to her dignity," Sher Mohammad, who walked hundreds of kilometres to the mausoleum, told the Associated Press news agency.
Mrs Bhutto's widower, Pakistan's President Asif Ali Zardari, is expected to speak at the ceremony.
"In the tradition of a true Bhutto, she faced certain death rather than abandon her principles," Mr Zardari said ahead of the nationwide commemorations.
"The tyrants and the killers have killed her but they shall never be able to kill her ideas, which drove and inspired a generation to lofty aims," he said.
Thousands of police officers have been deployed in Garhi Khuda Bakhsh, amid fears that Mr Zardari could also be targeted.
Multiple crises
Pakistanis are still dealing with the political consequences of Mrs Bhutto death, the BBC's Barbara Plett says.
Many Pakistanis say they sorely miss Benazir Bhutto |
Her Pakistan People's Party went on to win February's elections, bolstered by a sympathy vote. Mr Zardari later became Pakistan's president, after General Pervez Musharraf was forced to resign.
But one year on, Mr Zardari's government is floundering, and is seen by many as unable to cope with the multiple crises, including an Islamist insurgency and an economic downturn, our correspondent says.
Relations with India are also tense following the deadly attacks by militants in Mumbai last month. Pakistan is reported to have redeployed some troops from the north-west to the border with India, while India has advised its citizens against travelling to Pakistan.
Cover-up claims
On Friday, the UN Secretary General expressed hopes that a UN investigation into Mrs Bhutto's assassination could be set up in the near future.
In a statement, Mr Ban said he was committed to helping Pakistan's search for "truth and justice".
Earlier this year, British detectives investigating the fatal attack in Rawalpindi said Mrs Bhutto died from the effect of a bomb blast, not gunfire.
Their account matched that of the Pakistani authorities.
But Bhutto's party has insisted she was shot by an assassin, and has accused the government of a cover-up.