Thomas Begley died on 23 October 1993, when the device he carried into a fish shop exploded prematurely.
The Saturday afternoon blast caused devastation in the area.
Among those killed in the attack were two children aged seven and 13.
On Sunday, Thomas Begley's father unveiled a plaque during a ceremony in Flax Street, Ardoyne.
The crowd was also addressed by the man who accompanied Thomas Begley to the shop, Sean Kelly.
Kelly survived the bomb and was pulled from the rubble of the collapsed building.
He told those assembled for the commemoration he was "truly sorry for loss of life and injuries caused" in the bomb attack.
I understand the hurt that was caused in that IRA operation that went tragically wrong and there is no excuse.
Sinn Féin MLA for North Belfast Gerry Kelly attended the commemoration.
He told UTV: "Thomas Begley was a volunteer, he died in very tragic circumstances along with nine innocent people on the Shankill Road.
"This was organised by family and friends of Thomas Begley.
"This was simply to remember a person, a human being, who was involved in the conflict, who was an IRA volunteer and it was his 20th anniversary."
He continued: "We are in a different situation today that is all about peace.
"The one thing that all victims and survivors agree is that truth is the one thing that they all want.
"Now what you do with that truth is the difficulty.
"But let's get to the point that we have truth given by all."
He added: "Let me be clear, I do not, have not, and will not glorify violence.
"But people have the right to remember their loved ones who died in this conflict and there were many of those, some of them combatants, many, many others who were innocent people and we need to remember them all."
The event, which was organised ahead of the 20th anniversary of the bombing, has been criticised by the family members of those who died and victims' campaigners.
A loyalist protest against the event took place on the Crumlin Road.
Gina Murray, whose daughter Leanne was killed in the Shankill bombing, told UTV commemorating the IRA man was "wrong".
He did it in the first place, he knew what he was going out to do and I wouldn't accept an apology now, 20 years later.
She said Sean Kelly's apology at the event meant "nothing to her" and that it was just "hot air".
"I was disgusted at the commemoration," she told UTV.
"How can anyone do that and get away with it?
"That's why we held a protest which was quiet and dignified and held photographs of our loved ones."
Ms Murray appealed to the republican community to consider the feelings of victims like her.
She continued: "Think about things that are right and wrong.
"Think about us. They probably don't, but what they have done is wrong."
She added: "My daughter Leanne was 13 when she was killed. We were out shopping.
"The 20 years make no difference, it's like it was yesterday - the heartache and pain are still there."
The Shankill bombing was one of the most notorious atrocities of the Troubles.
The IRA claimed the target was a UDA meeting which was supposed to be held above the shop.