Pope Benedict XVI said the Rev. Carlo Gnocchi was "above all a valid educator of youths" who provided them with assistance and an education.
The pontiff made the remarks in a message from the Vatican to Milan, where the ceremony was held in front of the Gothic cathedral.
Beatification is the last possible step before sainthood.
Gnocchi, who was born near Milan in 1902, was ordained a priest at 22. He served as military chaplain with the army's Alpine contingent during Italy's Russian campaign in World War II.
He came back in 1943 with what was left of the Italian contingent and started attending to the children of his fallen soldiers.
He later created a foundation for disabled children, which was then expanded to include care of elderly people unable to take care of themselves and terminal cancer patients.
When he died in Milan in 1956, he donated his cornea, the outer lining of his eyes, for use by blind patients at his facility.
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SIC: AP