Baronness Thatcher was welcomed with cheers and applause from the hundreds of people who lined the streets to see her as Fareham marked 25 years since the Falklands War.
The former Prime Minister, who led the country during the conflict in the South Atlantic, joined the town to mark the 25th anniversary of the end of the war.
The 81-year-old, wearing a fuchsia dress and holding on to her black hat in the wind, did the honours as she cut the blue ribbon, officially opening the Falklands Arch.
As Fareham proudly staged the country's first commemorative event, 170 Royal Navy personnel from HMS Collingwood exercised their right to march through the town before a frail Lady Thatcher inspected the troops.
A special Drumhead service was then held to remember the 255 members of the British Task Force who lost their lives in the 1982 conflict.
Mrs Thatcher ended the ceremony by joining the Lord Lieutenant of Hampshire, Mary Fagan, to unveil the £25,000 iron archway, which stands at the entrance of the town centre.
The Iron Lady then laughed and shook hands with some of the well-wishers who had stood for hours for a chance to meet her.
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