Wales were undefeated on their way to yesterday's final against England in Vannes, beating Samoa, Scotland and Argentina in the Pool stage and overcoming incumbent world champions South Africa 18-17 In the semi-final.
Wales were leading 15-3 at half-time in Sunday's final, but England came back strongly to finish 23-15 winners.
Despite the defeat, WRU chiefs are understandably proud of the performances and development shown by the young group.
Roger Lewis said: "The Wales U20 squad and management return home from France after taking our age grade game to a new level by reaching the final of the Junior World Championship.
"In a final watched live by rugby fans around the world, the team showed that Wales is yet again capable of moulding young players of immense talent into a structured and competitive unit.
""Even in losing the final 23-15 to an extremely powerful England team, they enhanced the reputation of Wales as a rugby nation which deserves its place at the top table of U20 rugby.
"The semi-final victory against South Africa wrote a historic chapter in our history and the whole squad should be proud of what they have achieved.
"The team truly delivered in the style Wales want to achieve with a powerful font five supported by exceptional loose forwards and backs with flair to spare.
"The performances of the Welsh side in this Under 20 tournament can give us all more confidence in the continued success of senior Welsh rugby and is testimony to the strength of our age grade structures and player and coach development pathway."
Joe Lydon added: "This group of players and coaches have achieved a huge amount in the past two years, beating New Zealand and finishing third last year and going one better to reach the final this year.
"The record defeat to New Zealand two years ago was a catalyst in some ways to ensuring everything was as good as it could be in terms of the coaching and management team and the support systems and environment around the group.
"The backroom staff has been consistent in that period, and the players have built on the experience of previous tournaments, both at Under 20 level, and with players coming through from the Wales Under 18 set-up with a development squad having toured South Africa last summer.
"We will do the same again this summer in order to give players who could feature with Wales Under 20 next season a chance to experience training and competing away from home against top quality teams in a highly professional environment.
"While at times in the past we have felt we haven't fulfilled our potential as a nation at global tournaments, we are now in a position where we still have more potential, but we are starting to maximise the resources available to us and give players the best chance of reaching their individual goals."
Meanwhile, Wales Under 20 head coach Danny Wilson has paid tribute to Sam Davies who was rewarded for his performances at the Junior World Championship in particular with the IRB Young Player of the Year award.
Wilson said: "It's a great reward for Sam's achievements. He has worked hard during this tournament and indeed over the past year on improving aspects of his game.
"He has grown with each game in this tournament and his kicking game has been exemplary. Hopefully this recognition will help him to kick on to another level as he embarks on another chapter in his rugby career."