Tito's cave, along with the adjacent wood cottage, was restored as the main tourist attraction of this area which was visited by up to 300,000 people annually before last decade's war.
The reopening of the cave, devastated during the war along with numerous other facilities, was initiated by the "Drvarska drenjina" association which works to revive the town's potential.
The restoration of Tito's cave was financed by the United States Agency for International Development (USAID) with around 20,000 euros.
The head of the USAID office in Sarajevo, Howard Sumka, said the agency wanted to help develop transit and nature tourism in Drvar.
Today's ceremony included a history class at which retired general Ljubo Babic, one of the few living survivors of the battle of Drvar, spoke about his war memories.