A wreath was laid on the memorial noticeboard, just east of the lido, by Worthing mayor Ibsha Choudhury and Retired Wing Commander Anton Audus, on behalf of the Worthing branch of the Royal Air Forces Association.
Mr Audus led a short service, which was also attended by members of Worthing Veterans Association and Worthing councillors, on Tuesday, December 17, to mark the 80th anniversary of the crash.
Members of the crew were honoured as heroes who gave their lives to save the town from disaster.
Mr Audus said: "We remember the crew of Lancaster PB355, who tragically lost their lives when they crashed on to Worthing beach 80 years ago.
"The crew of 49 Squadron took off from RAF Fulbeck in Lincolnshire at quarter past four on Sunday, December 17, 1944. Heading for a bombing mission over the southern city of Munich, they joined 280 Lancasters over the skies of Reading as they turned south-south-east to head towards the coast and Channel crossing.
"During this part of the journey, the heavy-laden Lancaster struggled to maintain height and lost contact with the formation.
"They broke radio silence and were ordered to fly to the Channel, release their bombs and return to base. The crew continued to lose height and took the aircraft towards Worthing, where they narrowly missed the Plaza Cinema in Rowlands Road, now the bingo hall, scaring the cinemagoers as loud engine noise roared overhead.
"The Lancaster continued towards the sea, missing Burlington Hotel before coming over the sea defences and crash landing on to the beach.
"Large explosions from the bombs and ammunition going off meant that the rescue crews could not get close to the Lancaster. But when they did, they recovered one body from the wreckage, that of Flight Sergeant Gordon Callon, who was the tail gunner.
"He was buried in a cemetery in Littlehampton but they could not find the other members of the crew. A tragic loss but a tragedy averted, because of their bravery the Lancaster did not crash on to Worthing's built-up area.
"So, today, 80 years on, we remember the crew of the Lancaster. We know that the pilot was due to get married just a few days after the incident. We knew one of the crew had only married four months earlier. So, these young great man, doing their duty, paid the ultimate sacrifice and died 80 years ago."
The names of crew who were killed, the pilot F/O Edward Essenhigh, flight engineer Sgt Harry Varey, navigator Sgt Leonard Bertie Bourne, wireless operator F/S Frederick Bernard Rees, air gunner Sgt James Worrall Moore and bomb aimer F/O James Andrew Thomson, were read out before a minute's silence to remember them.

1. Lancaster bomber memorial service : Lancaster bomber memorial service
Veterans gathered on Worthing seafront to honour the crew of a Lancaster bomber that crashed on the beach during the Second World War Photo: Elaine Hammond

2. Lancaster bomber memorial service : Lancaster bomber memorial service
Veterans gathered on Worthing seafront to honour the crew of a Lancaster bomber that crashed on the beach during the Second World War Photo: Elaine Hammond

3. Lancaster bomber memorial service : Lancaster bomber memorial service
Veterans gathered on Worthing seafront to honour the crew of a Lancaster bomber that crashed on the beach during the Second World War Photo: Elaine Hammond

4. Lancaster bomber memorial service : Lancaster bomber memorial service
Veterans gathered on Worthing seafront to honour the crew of a Lancaster bomber that crashed on the beach during the Second World War Photo: Elaine Hammond