Falklands veterans, relatives of the fallen and VIPs were at the unveiling of a Welsh national monument.
The stone for the memorial was found near a Falklands battle site
The ceremony in Cardiff's civic centre marked 25 years since 255 British servicemen died retaking the islands.
The monument was created from five tonnes of Mount Harriet granite rock, located by veteran Andy "Curly" Jones, from Libanus, near Brecon, Powys.
The rock was kept near Pen-y-Fan, the Brecon Beacons' highest mountain, while names were carved by a local mason.
Veterans mixed 20 tons of concrete for the 6ft (1.8m) plinth on which the monument stands.
The 7ft (2.1m) rock, a gift from Falkland islanders, was shipped more than 8,000 miles (13,000 km) after three years' work by members of the South Atlantic Medal Association.
It bears the names of the three islanders who died in the conflict in addition to the servicemen who were killed.
Thirty-two Welsh Guards were among 48 who died when the troop ship the Sir Galahad was bombed just six days before the Argentine surrender.
Around 1,000 people attended Sunday's service, in Alexandra Gardens, to see a wreath laid at the monument and an act of remembrance before a march past by Falklands veterans and a flypast by two RAF Harriers.
First Minister Rhodri Morgan, said: "It is important that those people of Wales who lost loved ones and colleagues or saw fellow servicemen injured during the conflict 25 years ago have somewhere to come and remember.
"That feeling of loss never goes away and this magnificent stone will serve as a reminder to us all of the sacrifices and bravery displayed by Welsh men and women in a conflict that occurred thousands of miles away.
"The monument is also a testament to the outstanding work and dedication of the South Atlantic Medal Association (SAMA), who have worked tirelessly to bring the stone to Wales and make this memorial a reality."
Andy "Curly" Jones, who was a 19-year-old Welsh Guardsman on the Sir Galahad in 1982, found the rock at the base of the mountain where the Welsh Guards secured the "start line" for an attack by 42 Commando, Royal Marines.
Mr Jones, who is secretary of SAMA in Wales, said : "It means an awful lot to all the veterans to see their comrades' names on a national Welsh memorial."