The monument was created from five tons of Mount Harriet granite rock
The 2012 celebrations coincided with the Falklands anniversary and the 60th anniversary of the Welch Regiment's involvement in the Korean War. A parade to Cardiff Castle included a flypast by an RAF Dakota, but weather prevented a display by the RAF Falcons.
MLA Sawle was among the many British and local politicians attending the memorial re-dedication in Alexandra Gardens on Saturday morning.
The Welsh Guards were among 48 members of the British forces who died when troop ship Sir Galahad was bombed by the Argentines just six days before the 1982 conflicted ended.
The monument was created from five tons of Mount Harriet granite rock, located by veteran Andy “Curly” Jones, from Libanus, near Brecon, Powys.
The 2.1m rock, a gift from Falkland islanders, was shipped more than 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.
The Armed Forces Day flag was already flying at Cardiff Castle following a ceremony last week.
Veterans, cadets and members of the armed forces took take part in the parade on Saturday, watched by hundreds of people on the streets of Cardiff city centre, to commemorate servicemen and women past and present.
Welsh Secretary Cheryl Gillan said: “Armed Forces Day allows people to reflect upon, and honour the contribution made by all who serve or have served in the British military.
”In Wales, we have a special connection with our armed forces and we owe a tremendous debt of gratitude to those who work tirelessly, often in difficult circumstances, to defend our values and way of life.“
The Welsh government has put £20,000 to Armed Forces Day events in north and south Wales.
First Minister Carwyn Jones said: ”Today is about saying thank you to the members of the armed forces for the work they do in our name.
“Armed Forces Day is an opportunity for all of us to show our appreciation and to recognise the professionalism, commitment and sacrifice our service men and women endure.”
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