Thousands fell silent as they listened to the traditional Ode of Remembrance and Last Post.
Victorian Governor Linda Dessau spoke at the service, telling the crowd the shrine was a place where people from any part of the world could commemorate those who came before.
"We cannot change the past," she said on Monday morning. We cannot bring back those lost to the traumas of conflict."
"We can only support those who did return. We can only honour and remember those who did not.
"That is the purpose of this place of pilgrimage, this Shrine of Remembrance, this part of home that never forgets those who served."
Ms Dessau laid a wreath at the shrine's sanctuary at the end of the service, while Victorian Premier Daniel Andrews, Opposition Leader Matthew Guy, and Melbourne Lord Mayor Sally Capp were among the dignitaries who laid poppies.
Megan Blair attended her first Melbourne dawn service on Monday, after previously commemorating Anzac Day in Canberra.
She told AAP she was paying respect to her grandmother and grandfather who both served in Papua New Guinea during World War II.
"If it wasn't for them meeting there, I wouldn't be here today," she said.
"They met in Papua New Guinea and then also travelled to India. They then flipped a coin to decide whether to go to South America, South Africa or Australia.
"They flipped a coin and came to Australia."
Ms Blair said she was proud to commemorate those who fought for the freedoms Australians have today.
One of those people was Tony Murphy who served for Australia during the Vietnam War.
Mr Murphy usually attends the Sydney Anzac Day services, but came to Melbourne with his wife, son-in-law and grandchildren to watch his daughter sing at the dawn service.
"It's getting together with friends that you worked and served with for many years, and it's also to remember those that went before you," he told AAP.
Later on Monday morning, veterans will walk through Melbourne's city-centre for the traditional Anzac Day march.
RSL Victoria state president Robert Webster said they were hopeful about 10,000 people will attend the march.
"We also know that a number of bands that normally come in and march in the city have committed themselves to local services in the suburbs," he told AAP.
"Whether they all turn out to the shrine or spread out across the state, we'll have a great turnout."
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