The opening was preceded by an official launch by NSW Transport Minister David Campbell and community open day before more than 1000 people walked half the 3km stretch.
In declaring the lane open, Mr Campbell flagged the idea of having the $110 million link named Memorial Drive.
"Many people think the Northern Distributor is perhaps a really good planning name but not necessarily a good name to take us forward," he said
"The RSL has suggested Memorial Drive ... I look forward to some community discussion."
What should the road be named? Post a comment belowMr Campbell said the Northern Distributor was one of his first projects when he entered State Parliament in 1999.
"(It is) something that many of us who have lived in the northern suburbs of Wollongong for a long time thought would never happen," he said.
He never imagined that, 10 years later, he would have ministerial responsibility of the stretch at the time of its opening.
He acknowledged members of an early residents' reference group - Gerry Doyle, Graham Sturgiss, Ron and Gloria Halsey, the late Ron Burns, Steve Price, Pru Simpson and Clive Arthur.
"We have a project that is world class ... and will make travelling to and from the northern suburbs more quick, more efficient," he said.
Woonona's Regan King, 9, joined Mr Campbell in the the ribbon-cutting ceremony, plucked from the crowd as the first to arrive alongside mum Deborah and brother Bailey.
Peter Poulton, president of the Central Southern District Council of the RSL, said the Memorial Drive initiative was supported by members.
"There are precedents - Anzac Bridge, Lighthorse Roundabout and a number of others that commemorate the nation's servicemen," he said.