The seven-day September war for Sibenik marked a turning point in the defence of Croatia against attacks by Yugoslav army-backed rebel Serb forces, as the city's defenders managed to capture 27 Yugoslav Navy vessels.
The city's St Jacob's Cathedral was hit by an enemy missile on September 18, 1991.
"Generations to come will forever owe a debt of gratitude and respect to those who gave their lives for the country. Let their sacrifice not be in vain," Sibenik Bishop Ante Ivas said.
The memorial ceremony, held in the Sibenik theatre, was organised by war veterans' associations and local authorities.