The honour means Garstang is now officially recognised as one of the best places to live in Europe - as well as being one of Europe's most eco-friendly communities.
The honour was announced at a glittering ceremony in Split, Croatia, on Friday - to cheers from the 10-strong Garstang delegation in the city for the occasion.
There were celebrations minutes later at the Wheatsheaf pub back in Garstang, where Garstang in Bloom activists gathered to hear the result via a phone call from the town's bloom committee leader Norah Hoyles who is in Split.
That plan changed at the last minute and the result was in fact sent by text message from Garstang mayor Michael Halford to Bloom press officer Lynn Harter at the Wheatsheaf.
The award will enhance Garstang's existing international status as the world's first Fairtrade town as well as boost the number of tourists to Garstang from both Britain and Europe.
As well as Coun Halford and Mrs Hoyles the Garstang delegation in Split includes Wyre mayor and mayoress Gordon and Yvonne McCann, Henry Hoyles, Wyre Council chief executive Mr Jim Corry and Bloom team members Lyn Nickson, Easet Mitchell, Andrew Thompson and Raymond Whiteside. They are due back home on Sunday.
Speaking after hearing the result tonight Mrs Harter said: "This is fantastic. It is a well earned accolade for everyone in the community who made the effort to get involved, and who in turn helped to create the "Entente Florale Effect" by being part of Garstang's very special day.
"It is also a tribute to those who have, and will continue to work tirelessly year after year to ensure the town is always a winner.
"It has all been hugely exciting. A huge amount of effort went into this and we are delighted at the brilliant result. We are sure our cheers at the Wheatsheaf could be heard as far away as Split!"
* Glittering celebrations: more on Garstang's success - including an interview with Norah Hoyles, and the judges' detailed comments on Garstang's entry - in the next issue of the Garstang Courier - out on September 24.