The Queen has presented the new colours to the regiment of which she is Colonel-in-Chief.
She visited the Duke of Lancaster's Regiment at its base at Fulwood Barracks in Preston, Lancashire.
The regiment was formed from the King's Own Royal Border Regiment, the King's and the Queen's Lancashire Regiments.
A crowd of about 3,000 watched the parade of the soldiers who are recruited from the north west of England and the Isle of Man.
The Queen, addressing the crowd, said the presentation of new colours is "a significant moment in the life of any regiment".
'Grave losses'
"But, for one that is forging for itself a new identity, it is a special opportunity to pay tribute to the achievements of the past, to give thanks for the commitment in the present and to express confidence in the future," she said.
The Queen paid tribute to the seven soldiers of the regiment killed in Iraq in the last two years.
She said: "In recent times, the regiment's service has caused it to bear grave losses.
"My thoughts and prayers go out to those who have lost their lives and those who are recovering from their injuries."
The Queen had also visited Singleton's Dairy in Longridge in recognition of the firm's overseas contracts which have twice garnered a Queen's Award for Enterprise in International Trade.
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