Mr Livingstone grew up in Lambeth and began his political career there as a councillor, but when the plaque was unveiled the 'e' was missing from the end of 'Livingstone'.
In addition, at least two more of the 32 plaques laid at the weekend ceremony in Archbishops Park contained basic mistakes. Catalyst was spelt 'catalist' and dancing troupe ended up as 'troop'.
The plaques were part of the Lambeth Millennium Pathway project, which celebrates the people, places and events which helped shape modern Lambeth over the last 1,000 years.
Lambeth Conservative leader John Whelan said: 'How is this going to go down in history when Lambeth council in the year 2999 is working out how to celebrate?
'Perhaps they will reflect on the failure of the government's literacy strategy. However, it isn't the first time that Lambeth has made embarrassing spelling mistakes.'
A Lambeth spokesman said: 'The contractor is going to try and put it right fairly quickly. The project is an excellent one and will give pleasure to local people for many years to come.'