Police were called to the centre of Camberley on 9th December when members of the public began heckling Dave Barker (pictured right) and Stephen Wan (left), and accusing them of hate speech.
Reacting to the news he will not be prosecuted, Mr Barker, who has been preaching in town centres for 30 years, said: "I have never been interviewed by the police before; this is a concerning development."
The two men were accused of saying "homosexuals are going to hell" and "man cannot lie with man" - claims dismissed by their lawyers.
Andrea Williams, chief executive of the Christian Legal Centre, said: "We're delighted that David and Stephen will not face charges for sharing the good news of Jesus with the public.
"Once again, the historic freedoms to preach Christianity on UK streets have been upheld."
Legal representatives argued that 58-year-old Mr Barker and 50-year-old Mr Wan were within their rights to explain their Christian faith on Camberley High Street.
The two men quoted John 3.16 and described how everyone has sinned and fallen short of the glory of God - but one passer-by repeatedly asked them about homosexuality.
Addressing the issue by referencing the Bible, Mr Barker and Mr Wan were sworn at and the police were called.
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