5 February 2015
Last updated at 03:09 ET
Mr Williams, the longest-serving network anchor in the US, has often recounted his experience, but but now blames the "fog of memory".
"I made a mistake in recalling the events of 12 years ago," he said.
"I want to apologise. I said I was travelling in an aircraft that was hit by RPG [rocket-propelled grenade] fire. I was instead in a following aircraft."
He said his account was "a bungled attempt by me to thank one special veteran and by extension our brave military men and women, veterans everywhere, those who have served while I did not."
Mr Williams repeated the story as recently as Friday, describing his ordeal on TV while paying tribute to a retired soldier who helped protect the grounded aircraft and crew.
His apology came after veterans who were on the helicopter that was hit posted comments on the broadcaster's Facebook page.
One wrote: "Sorry dude, I don't remember you being on my aircraft."
Flight engineer Lance Reynolds, who was on the helicopter that was hit, told military newspaper Stars and Stripes: "It was something personal for us that was kind of life-changing for me. I know how lucky I was to survive it."
"It felt like a personal experience that someone else wanted to participate in and didn't deserve to participate in."
Some in the US media say the admission by Mr Williams may harm his career.
"At least in the short term, the false story may damage the anchor's most valuable asset - his credibility," the Washington Post said.
NBC has not said whether Mr Williams will face disciplinary proceedings, the Post reports.
by Biodun Iginla, BBC News, New York
One of America's most
famous news anchors has apologised after a story he repeatedly told
about coming under fire in Iraq was revealed to be untrue.
NBC's Brian Williams said he was on a helicopter forced down in 2003, but veterans have now disputed his account.Mr Williams, the longest-serving network anchor in the US, has often recounted his experience, but but now blames the "fog of memory".
"I made a mistake in recalling the events of 12 years ago," he said.
"I want to apologise. I said I was travelling in an aircraft that was hit by RPG [rocket-propelled grenade] fire. I was instead in a following aircraft."
He said his account was "a bungled attempt by me to thank one special veteran and by extension our brave military men and women, veterans everywhere, those who have served while I did not."
Mr Williams repeated the story as recently as Friday, describing his ordeal on TV while paying tribute to a retired soldier who helped protect the grounded aircraft and crew.
His apology came after veterans who were on the helicopter that was hit posted comments on the broadcaster's Facebook page.
One wrote: "Sorry dude, I don't remember you being on my aircraft."
Flight engineer Lance Reynolds, who was on the helicopter that was hit, told military newspaper Stars and Stripes: "It was something personal for us that was kind of life-changing for me. I know how lucky I was to survive it."
"It felt like a personal experience that someone else wanted to participate in and didn't deserve to participate in."
Some in the US media say the admission by Mr Williams may harm his career.
"At least in the short term, the false story may damage the anchor's most valuable asset - his credibility," the Washington Post said.
NBC has not said whether Mr Williams will face disciplinary proceedings, the Post reports.
From other news sites
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ABC Online NBC news anchor recants Iraq war helicopter story 59 mins ago
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FOXNews.com KURTZ: NBC'S Williams fabricated being shot down in Iraq 1 hr ago
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Guardian.co.uk NBC's Brian Williams forced to retract story about coming under fire in Iraq 2 hrs ago
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Yahoo! UK and Ireland US anchor Brian Williams recants on coming under fire in Iraq 4 hrs ago
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CNN Money NBC's Brian Williams recants his Iraq attack story 7 hrs ago
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