Wreaths were also laid above the wreck of HMS Royal Oak to mark the 75th anniversary of its sinking.
The warship was torpedoed by a German U-boat while it was at anchor in Scapa Flow in Orkney.
Most of the 1,234 crew were asleep below deck, and 834 - including many boy sailors - died.
The wreaths formed part of the first significant Royal Oak anniversary not to be attended by any of the remaining survivors.
There are believed to be just three men who survived the sinking still alive today.
However, families of the the crew, and the community in Orkney, have vowed to carry on the act of remembrance for generations to come.
The Royal Oak, which also served in World War One, including the Battle of Jutland, is an official maritime war grave.
The memorial service was conducted by the Reverend David Dawson and the Last Post was played by bugler Chris Bray of Her Majesty's Royal Marines Band Scotland.
Relatives of the survivors and those who lost their lives were taken to the site of the wreck by HMS Bangor.
Rear Admiral John Clink said: "It is entirely my honour to have been able to pay tribute to the 834 men who lost their lives in Scapa Flow 75 years ago.
"And we remember, too, those who survived that tragedy, living with difficult memories of their lost friends from that terrible night throughout their lives.
"The Royal Navy will never forget."
Orkney councillor, Dr Stephen Clackson, whose grandfather Seaman Ronald Clackson lost his life at the age of 20, was at the service, which was attended by a number of Royal Navy dignitaries.
"It's important to keep the memory alive," Dr Clackson said. "My son is only three years younger than my grandfather was when he was killed."
"Being aboard HMS Bangor was fascinating and it gave us a picture of what it would have been like for my grandfather, seeing how enclosed it was and the thought of being trapped down there when the torpedo hit."
The White Ensign was exchanged from the wreck for a new one by the Royal Navy's Northern Diving Group from HM Naval Base Clyde last week.
It was later presented to Henry Blythe, whose uncle died on the Royal Oak.

But US President Donald Trump appears to be laying claim to the phrase for himself.
In an interview with The Economist published on Thursday, he used the metaphor to describe his hopes for tax reform.
Then he asked: "Have you heard that expression used before? Because I haven't heard it. I mean, I justâ€¦ I came up with it a couple of days ago and I thought it was good. It's what you have to do."
His claim immediately raised eyebrows.
Or, as The New York Observer put it: "The Entire Internet Is Trolling President Trump Over 'Priming the Pump."
Far from being a Trump-coined neologism, priming the pump has a long history in economic theory and was in widespread use by the 1930s.
It's most often associated with John Maynard Keynes, the influential British economist who urged public spending to stimulate a weak economy.
Newspapers also made the comparison during the presidency of Herbert Hoover, who was in office during the Wall Street Crash.
Early Thursday morning, the Merriam-Webster Dictionary Twitter account struck back, noting: "'Pump priming' has been used to refer to government investment expenditures since at least 1933."
The Oxford English Dictionary identifies the phrase used in a business context even earlier, quoting a 1916 edition of Everybody's Mag: "When the waters of business are stagnant, gentlemen, it becomes necessary, if I may say so, to prime the pump."
The White House press office did not respond to an email seeking clarification on Mr Trump's comments.
But even Mr Trump has a longer history with the expression.
A non-exhaustive internet search revealed he used it in a speech in December and in earlier interviews with Time and The New York Times.
More than 100 people attended a ceremony to remember the crew of a battleship which sank in 1939.
[NEXT_CONCEPT]
Students of 1930s economics are no strangers to the idea of 'priming the pump' - public spending to get the economy back on its feet.