Australia's Foreign Minister Julie Bishop and New Zealand Justice Minister Amy Adams were among those paying tribute to the World War I dead on the peninsula.
"As we gather here this morning, we each pay tribute to the men and women of our armed forces who have carried on the ANZAC tradition for the past century and more -- that spirit of courage, mateship, endurance and sacrifice that has forged our national character and identity," Bishop said.
Tuesday marked the 102nd anniversary of the first landing by Australian and New Zealand Army Corps (ANZAC) troops on the Gallipoli (Gelibolu in Turkish) peninsula.
The unsuccessful eight-month campaign that followed saw more than 44,000 British, Irish, French, Australian, New Zealand, Indian and Canadian troops and nearly 87,000 Ottoman soldiers killed.
"The cliff the ANZACS could not scale was the courage, discipline and tenacity of the Turkish army, determined to defend their homeland," Bishop added.
Tuesday is commemorated in Australia and New Zealand as ANZAC Day and Gallipoli is seen as one of the defining events that ushered both countries towards nationhood.
The battle also forged links between Turkey, which emerged as a modern state shortly after the war, and the ANZAC countries.
The crowds gathered at Anzac Cove as the sun rose above the peninsula for the hour-long service.
Adams thanked the Turkish people for preserving and caring for the graves of New Zealand servicemen.
"This peninsula of war is now a place of friendship and healing," she said. "It's proof that enemies can become the truest of friends. That we have more in common than that which divides us.
"We hope it inspires those conflicts around the world where deep-rooted hatred seems impossible to overcome."
Also present were Bekir Sitki Dag, the deputy governor of Canakkale province, British Ambassador Richard Moore, Australian Ambassador James Larsen and New Zealand Ambassador Jonathan Curr.
