PETER Kay declared "we can't let terrorists win" as he spoke at the charity concert to reopen the Manchester Arena on Saturday night.
Kay appeared at the We Are Manchester show to introduce Noel Gallagher.
Peter said: "The victims will never ever be forgotten, but we've got to move forward with love and not hate, and that's how we win."
He worked as a steward at the arena in the 1990s before going on to perform there more than 40 times.
He said "There's been a lot of joy in this room over the years, including the night of 22 May, right up until the terrorist attack. These last four months have been incredibly painful."
"Horrendous is putting it mildly. But that's why you're here - because we can't let terrorists win.
"And I know the memories of that night will stay with us for a very long time but we've got to remember the good times and let them outweigh the bad."
Kay then introduced Gallagher, and the former Oasis star performed a string of favourites including Don't Look Back In Anger.
The song took on special significance in the wake of the bombing after a crowd started spontaneously singing it at a memorial.
"It's become some sort of anthem for defiance," Gallagher said. "And every time you sing, we win."
The 14,000 fans cheered the names of those killed in the Manchester Arena terror attack when Mayor of Greater Manchester, Andy Burnham spoke as the benefit gig began, reciting the names of the 22 lost in the bombing.
He told the crowd: "Thank you to the city for coming together.
"Thank you for being who you are. We are Manchester, a city united, nothing will ever change us, nothing will ever divide us."
Families who lost loved ones and those injured in the terror attack three months ago were at the sold-out concert.
The mother and step-father of Olivia Campbell-Hardy attended the concert. They revealed they were looking forward to the event but felt apprehensive.
Paul Hodgson said: "Charlotte's not too happy about the crowds and all that but we can't stop doing the things we would normally do.
"We need to carry on and Olivia would have been there fighting the cause."
The event was to honour those affected by the attack, welcome back live entertainment to the venue and raise money for a permanent memorial for the victims.
Suicide bomber Salman Abedi detonated his device in the foyer of the venue killing 22 and injuring scores of others at the end of an Ariana Grande concert, on May 22.
The devastated area has been partly renovated and re-opened for this evening's event, to show the city will not be defeated by terrorism.
A team of trained trauma specialists and mental health professionals was on hand for anyone needing help during the emotional re-opening event held amid heightened security.
After a pre-show DJ set from Clint Boon and Mr Burnham's speech, a hush fell across the arena as Prestwich-poet Tony Walsh, who performs as Longfella, began a passionate reading of his poem This Is The Place.
He moved crowds to tears at a vigil outside Manchester town hall the day after the attack with his work.
His recital on Saturday, an ode to the city celebrating its achievements and spirit, was met with cheers and wild applause.
He said: "Tonight's going to be a very special and emotional event."
The night's music entertainment began with a set from Pixie Lott.
Later, Bolton comedian Peter Kay will introduce headline act Noel Gallagher and his band High Flying Birds, the Phoenix Nights star is returning to the arena where he once worked as a steward.
After sets by Rick Astley, Blossoms and Nadine Coyle, local band the Courteeners were greeted with rapturous applause for their performance.
After Peter Kay's introduction, Mancunian Gallagher took to the stage, saying "good evening Manchester", before launching into a string of crowd-pleasing Oasis anthems.
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