Ken Fisher, whose grandfather James Fisher was killed in action in 1915 when he was 29, came across the medals as he was walking past the memorabilia of Manchester soldiers at the Central Reference Library.
Ken, from Northenden, said: "It took me completely by surprise. The hairs on my neck stood on end.
"I last saw the medals 40 years ago when my grandmother died and her house was cleared. I don't know what the odds were on me seeing them here but I'm very glad they're on display. I didn't know my grandfather but my middle name is James after him."
The discovery has allowed Ken, 59, to unlock a connection with his past after years of struggling to trace his family history.
He said: "My father's side was a branch of family history I didn't know anything about."
David Harrop, who runs the exhibition and bought the medals from an online auction website, is now helping Ken trace the background of his grandfather, who was from Didsbury and served in the Lancashire Fusiliers.
David, 60, a retired postal worker who has organised First World War exhibitions for 10 years, said: "To have Ken find his grandfather's name makes putting the exhibition together very much worthwhile.
"It's very important that we remember the awful things that happened and those who never came back from the war. I feel very strongly that these young lads should never be forgotten and this exhibition is my contribution."
The free exhibition entitled Lest We Forget, commemorating the war's 90th anniversary, runs until November 29.
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