A coroner has found that Private Cheryl James died from a "self-inflicted" gunshot wound at Deepcut barracks in 1995.
The ruling that she was not unlawfully killed follows a second inquest into the death of the 18-year-old soldier, who was found shot dead while she was on guard duty.
She was one of four soldiers who died at Deepcut in Surrey between 1995 and 2002 amid claims of bullying and abuse.
Following a three-month inquest into her death, Coroner Brian Barker QC said he was satisfied there was not sufficient evidence to support a conclusion that she was unlawfully killed.
He said: "When I ask myself if there is sufficient evidence with which I can properly reach a conclusion of unlawful killing the only answer I have is 'no'."
Pte James' father Des said he was "deeply saddened" by the conclusions, adding that he and his wife Doreen believed the evidence "did not lead to this verdict".
But he welcomed the coroner's scathing remarks about the welfare of young recruits at Deepcut, which he said had been a "toxic and horrible" environment for his daughter.
The Army had always maintained that Pte James took her own life, but her parents, Des and Doreen, said there had not been a thorough investigation, arguing that the culture of the camp was "out of control" and contributed to her death and those of the three other young recruits.
Mr Barker said it was "highly regrettable" that the investigation in 1995 was "not more thorough".
"Had it been, some of the inconsistencies of memory might have been avoided and the scientific evidence might have been of much better quality," he said.
Mr Barker said Deepcut had far too few officers to train and look after the recruits, who were left bored and indisciplined.
Launching a scathing attack on welfare standards at Deepcut, Mr Barker said the general culture of the base fell below the standard expected, saying the "haphazard provision of welfare support was insufficient".
He also highlighted a culture of sexual promiscuity and heavy drinking at the Surrey base.
Mr Barker said the Army accepted that some instructors "saw young females as a sexual challenge".
He added: "The evidence of this inquest supports the presence of consensual but improper relations between instructors and trainees."
Mr Barker said there was an assumption of suicide at the time of the initial investigation - meaning the scene was not adequately investigated and ballistics tests were not carried out.
Pte James' clothes were incinerated, bullet fragments were not preserved and interviews with those at the barracks were inadequate, he said.
Mr Barker said: "This has left unanswered questions which understandably fuelled speculation as to how Ms James died."
He praised Pte James' parents for fighting to discover the truth and said Mr James' battle for justice had been key in encouraging the Army to drive through reforms to improve the welfare and support it gives young recruits.
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