Wootton Bassett has become the first town in more than a century to be given the title 'Royal' in recognition of the way it has honoured the UK's war dead.
It will now be known as Royal Wootton Bassett after Princess Anne visited the Wiltshire town to bestow the tribute.
The Queen said it would be "an enduring symbol of the nation's admiration and gratitude".
The Princess Royal joined a number of dignitaries for a series of formal events, involving parades of troops, the Royal Wootton Bassett Band and the Royal Marines Band.
Princess Anne told the crowd the community had "come together in an extraordinary way".
"I am privileged to be allowed to add my thanks to those of Her Majesty the Queen and the whole country for the example you set in respecting with dignity the losses that this country's operational responsibilities have forced upon us."
Among those at the naming ceremony were Prime Minister David Cameron and his new Defence Secretary Philip Hammond, who replaced Liam Fox on Friday.
Dr Fox resigned amid controversy over his working relationship with his friend Adam Werritty.
Due to its proximity to RAF Lyneham, where the bodies of killed servicemen were returned to Britain, the town became a focal point of mourning as funeral convoys passed through.
From an impromptu show of respect by a handful of local people, it grew and gained national status over four years, before repatriations were switched to RAF Brize Norton earlier this year.
Hundreds and then thousands lined the streets. In total, Royal Wootton Bassett marked the repatriations of 355 people.
Families of those who died said it became a valuable part of the grieving process.
Jane Whitehouse's son Jonathan was killed in Afghanistan in 2009, when seven other British servicemen died within a 24-hour period.
"It is so right that Royal Wootton Bassett is getting this recognition," she said.
"It is very poignant to me, especially the way they honoured my son and all the other servicemen that came home."
High street shop owner Hazel Newson said: "I think it is just a token of the country's respect for what we have done. We were not expecting it.
"Nobody was thinking about anything other than the soldiers that were coming home."
The town's mayor, Paul Heaphy, said the town found the attention "rather humbling."
He said: "This is not a day for celebration but one for commemoration, one of recognition, and one to mark the beginning of a new chapter for our town."
It will now be known as Royal Wootton Bassett after Princess Anne visited the Wiltshire town to bestow the tribute.
The Queen said it would be "an enduring symbol of the nation's admiration and gratitude".
The Princess Royal joined a number of dignitaries for a series of formal events, involving parades of troops, the Royal Wootton Bassett Band and the Royal Marines Band.
Princess Anne told the crowd the community had "come together in an extraordinary way".
"I am privileged to be allowed to add my thanks to those of Her Majesty the Queen and the whole country for the example you set in respecting with dignity the losses that this country's operational responsibilities have forced upon us."
Among those at the naming ceremony were Prime Minister David Cameron and his new Defence Secretary Philip Hammond, who replaced Liam Fox on Friday.
Dr Fox resigned amid controversy over his working relationship with his friend Adam Werritty.
Due to its proximity to RAF Lyneham, where the bodies of killed servicemen were returned to Britain, the town became a focal point of mourning as funeral convoys passed through.
From an impromptu show of respect by a handful of local people, it grew and gained national status over four years, before repatriations were switched to RAF Brize Norton earlier this year.
Hundreds and then thousands lined the streets. In total, Royal Wootton Bassett marked the repatriations of 355 people.
Families of those who died said it became a valuable part of the grieving process.
Jane Whitehouse's son Jonathan was killed in Afghanistan in 2009, when seven other British servicemen died within a 24-hour period.
"It is so right that Royal Wootton Bassett is getting this recognition," she said.
"It is very poignant to me, especially the way they honoured my son and all the other servicemen that came home."
High street shop owner Hazel Newson said: "I think it is just a token of the country's respect for what we have done. We were not expecting it.
"Nobody was thinking about anything other than the soldiers that were coming home."
The town's mayor, Paul Heaphy, said the town found the attention "rather humbling."
He said: "This is not a day for celebration but one for commemoration, one of recognition, and one to mark the beginning of a new chapter for our town."