The Mayor of Rushmoor, Councillor Sophia Choudhary, unveiled the revamped playground, which now features a fortress-themed climbing frame, pirate ship and a rope swing.
The council used £108,000 contributed by local developers towards community projects, plus a £50,000 grant from the Suez Communities Trust.
Local residents and members of the Aldershot Baptist Church toddler group, who helped to choose the final design of the playground, were invited to the opening.
Cllr Choudhary said: “I’m delighted to open this fantastic new park and I’m sure that it is going to be well used and enjoyed by a great number of people.
“For my sister and I, Municipal Gardens was our local park growing up and we have fond memories of times we spent here with family and friends.
“This play area is another positive addition for a new generation and the community.”
Councillor Maurice Sheehan, RBC cabinet member for leisure and youth, said: “It’s wonderful to see so many families getting outdoors and enjoying this new equipment.
“We would like to thank everyone who was involved with the project and we hope that they enjoy the play area for many years to come.”