Team GB, including the Queen's granddaughter Zara Phillips, finished behind Germany in an exciting contest watched by other members of the Royal family.
Success was assured when the final British rider Tina Cook incurred only just one time fault on her round, giving Britain its 18th Olympic post-war eventing medal.
Phillips, Cook and team-mates Nicola Wilson, William Fox-Pitt and Mary King went into the final day of the competition in second place.
And they received a rapturous reception from the home crowd, as Britain looked to overcome leaders Germany and climb to the top of the podium.
However, Germany's riders did enough to secure gold. New Zealand won bronze.
Zara Phillips speaking after she was presented with her medal by her mother Princess Anne, "When you get one of these put around your neck it brings it all back to you and you realise that everything was worth it". "And of course it was amazing to receive the medal from my mum"
Yesterday was the first anniversary of her wedding to rugby player Mike Tindall, but when asked if she had had a chance to celebrate, she laughed and said: "No!"
When asked if the competition had been an emotional experience for her, she joked: "It's like an emotional rollercoaster". "Family members have come to support me every day of the eventing, It's nice that they've managed to come and watch" she said.
