Pte James Smith, who had been suffering from shell shock when he was shot at dawn as a deserter in 1917, was among more than 300 soldiers pardoned by the government.
Bolton council this year agreed to add his name to the town's roll - 92 years after Pte Smith, of First Battalion Lancashire Fusiliers, was shot for disobeying an order.
He had fought in some of the most horrific battles of the war, including The Somme, where he was almost buried alive by an exploding German shell.
The recognition in Bolton followed a campaign by Pte Smith's relatives, led by great nephew Charles Sandbach.
Descendents of the soldier attended a private ceremony on Saturday.
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