The artwork, which depicts some the town’s landmark buildings, has been designed by local artist Kyle Emmerson.
The 32-year-old attended the unveiling, along with local politicians including Worksop Mayor Tony Eaton, and members of the North Notts and Lincs Community Rail Partnership.
Members of the rail partnership had been searching for an artist for some time and commissioned Kyle after being impressed after seeing some of his work online.
Member David Pidwell said the group was delighted with it has turned out.
"It’s really engaging and imaginative and we’re delighted with it,” he said.
"It is like a little quiz too by trying to name all of the buildings.”
Kyle said he had been ‘overwhelmed’ by the reaction to the sign, which took him around eight hours to design.
He added: “Everyone has been so positive about the artwork.
"I’ve been overwhelmed to have such a good response and have everyone so excited about it.
"It has been really encouraging. I’ve had so much support from lots of different people.”
Kyle’s mother, Anita, who also attended the unveiling, said the location of the artwork was particularly poignant for her.
She said: “It’s especially important for me, as well as for Kyle, because his dad used to work on the railway and was killed on there when Kyle was a young boy.
"For his first piece to be here is just wonderful.”
Councillor Eaton, who performed the unveiling, said the sign was a great welcome to the town for visitors.
"It is fantastic and a brilliant sign that people can see as they are travelling in and out of Worksop,” he added.
"It is very striking and the buildings are very recognisable.
"It is an excellent piece of artwork and a brilliant welcome to Worksop for people.”
The new sign is part of several initiatives the group is leading on to improve the station.
The next project in the pipeline is installing a model railway depicting part of the Worksop line in one of the empty unused rooms on the platform.