But it was not just her clothes that met a bizarre end, a number of other items either went missing or astray.
The princess's own mother, Frances Shand Kydd, was accused in court of shredding large amounts of documents belonging to Diana, while she sat on her sofa drinking wine.
And Mr Burrell - who denies stealing 310 items from the princess - was also accused, before the jury, of destroying some of her more "intimate apparel" such as underwear, a swimsuit, stockings, tights and exercise clothing.
In one room in his home in Cheshire, the jury was told, there was a pine bench seat which tilted up to reveal storage space beneath.
This was the place where police found many of the items Mr Burrell is accused of stealing, including photographs, letters, CDs and cards.
At 3.30am on the day she died, the court heard, Mr Burrell was seen by a policeman loading his car with Diana's possessions to destroy - something he said was at the request of the family.
Police developed more than 3,000 photographs from negatives allegedly found in a carrier bag at Mr Burrell's home.
There were also photographs of the Queen, the Duke of Edinburgh and royal tours, and paintings from the Prince of Wales, signed "Charles", the court was told.
However, the hearing also learned the princess had on occasions given away clothes herself, to members of her family members of her family at informal events at Kensington Palace which Mrs Shand Kydd, smilingly, termed "upmarket car boot sales".
Missing clothes
Lord Carlile QC, for Mr Burrell, also told the hearing that on one occasion Mrs Shand Kydd, and her other two daughters Lady Sarah McCorquodale and Lady Jane Fellowes went to Apartment Nine at Kensington Palace and took away a "large quantity" of Diana's clothes from three storage rooms.
He said they took them away in a large estate car belonging to Lady Sarah and another car belonging to Lady Fellowes to which Mrs Shand Kydd simply replied: "We were all the same size."
Lady Sarah said she had received some suits and casual wear from her sister's estate. She also had a set of curtains, some chairs and a television from the office.
Father-of-two Mr Burrell, 44, from Farndon, Cheshire, denies stealing hundreds of personal items from the Princess's estate and property belonging to Prince Charles and Prince William.
The trial continues.