Tupac went up in smoke … at least according to Suge Knight, who says Pac’s friends and family rolled his cremated remains into a blunt and started puffing.

Suge laughed recalling the smoke sesh in an interview with PEOPLE … telling the outlet he was one of the only ones in 2Pac’s circle who didn’t hit the blunt.

The Death Row Records mogul says he was on probation at the time and told Tupac’s mother he would love to smoke on Pac’s remains but feared he would get in trouble if he took a hit.

Suge says Tupac’s mom, Afeni Shakur, wanted her son cremated ASAP without a funeral … and Knight claims he paid $1 million cash to make it happen.

The night Tupac was cremated, Suge says a bag with Pac’s ashes was passed around and his homies rolled him up and smoked him.