Organised by Ludlow War Memorial Fund, the occasion attracted 47 entries which were announced at Poyners Drapers in Broad Street.
Cora Buffey announced the winners and presented the trophies for first place, second place and third place, plus highly commended, for respective shop windows.
Organiser Graeme Perks said the decision had been a difficult one to make but the town library was announced in first place for its displays, the Wool Shop came second with Hope House in third.
There were also six highly commended: Peter Meredith, Leaf, At Home Ludlow, Etts, Twigs and McCartneys.
Library staff were cock-a-hoop with their win. They said on their Facebook page: "Hooooray! We won gold for the Platinum Jubilee window dressing comp!
"We are thrilled and delighted! Special thanks to library assistants Angie and Sally for their hard work and creativity."
The Poyners team and Ludlow War Memorial Fund has also set up what St Laurence's Church describes as a "wonderful display of photographs and flowers in the Lady Chapel to mark the Queen’s Platinum Jubilee."
The fund has also worked with the children of St Laurence’s Primary School to decorate special Platinum Jubilee crowns which have been hanged on the Housman cherry tree and on the benches in the garden at the west end of the church.