The Royal New Zealand Air Force's No5 Squadron flew from Laucala Bay, near the capital Suva, from 1941 to 1967, conducting anti-submarine patrols, maritime reconnaissance and transport and air-sea rescue missions in Singapore, Catalina and Sunderland flying boats.
At its height, 600 RNZAF personnel were deployed at the station.
The monument was designed and made in Fiji and is on the grounds of the University of the South Pacific, on land that was formerly home to No5 Squadron.
Laucala Bay veterans, a contingent of RNZAF personnel, including current members of the squadron, have travelled to Fiji to attend the commemorations, which are part of the University of the South Pacific's 50th anniversary celebrations.
New Zealand Defence Force deputy chief Air Vice-Marshal Kevin Short, a veteran of the squadron himself, said the air force was delighted the service of Laucala Bay veterans was being acknowledged.
He said they paved the way for the work P-3K2 Orions now undertake in the Pacific.
"The Laucala Bay station forged a longstanding relationship between New Zealand and Fiji militaries, and the New Zealand Defence Force remains committed to contributing to regional security and stability in the southwest Pacific."
The air force left Laucala Bay in 1967, when the flying boats returned to Hobsonville, to be replaced by the fixed-wing Orions.
