The 40-year-old Fashion Police host delivered a contrite message in a live TV broadcast before a rerun of the controversial Oscars episode, which aired on Monday.
In the Tuesday on air apology Rancic said she was sorry for claiming that the Disney star looked like she smelled of weed just because she has dreadlocks.
'I didn't mean to hurt anyone': Giuliana Rancic has apologized for making 'racist' comments about 18-year-old singer Zendaya
Offended: Zendaya, pictured at the Academy Awards on Sunday, lashed out at Giuliana Rancic on Monday following a 'disrespectful' comment about her hair
'I'd really like to address something that's weighing really heavy on my heart,' the TV host began. 'I want to apologize for a comment that I made on last night's Fashion Police about Zendaya's hair.'
'As you know, Fashion Police is a show that pokes fun at celebrities in good spirit, but I do realize that something I said last night did cross the line.'
'I just want everyone to know that I didn't intend to hurt anybody, but I learned it's not my intent that matters,' Rancic continued. 'It's the result. And the result is people are offended, including Zendaya. And that is not okay.'
'Therefore, I want to say to Zendaya, and anyone else out there that I hurt, that I'm so sincerely sorry,' she concluded. 'This really has been a learning experience for me. I learned a lot today and this incident has taught me to be a lot more aware of cliches and stereotypes, and how much damage they can do.'
'And that I am responsible, as we all are, to not perpetuate them further. Thank you for listening.'
Furor erupted online on Monday after Rancic claimed Zendaya smelled of patchouli just because she has dreadlocks.
The comments went further on the Academy Awards special when the show cut to a picture of the singer on the red carpet - a voice off camera could be heard saying that the Disney star smelled like 'weed'.
Many have claimed that the ignorant comment was not made by Rancic - who has been roundly slammed in the past 24 hours - but was in fact her co-host Kelly Osbourne.
But on Tuesday the daughter of rock legend Ozzy Osbourne took to Twitter to defend herself.
Distancing herself: Kelly Osbourne says she played no part in the Zendaya scandal that has left her Fashion Police co-host Giuliana Rancic tarnished, pictured on Sunday at the Academy Awards
'Zendaya is my friend': The daughter of rock legend Ozzy Osbourne took to Twitter to defend herself
'I DID NOT MAKE THE WEED COMENT (sic),' she wrote. 'I DO NOT CONDONE RACISM SO AS A RSULT OF THIS IM SEREIOULSY QUESTIONONIG STAYING ON THE SHOW!'
Adding: 'I WILL NOT BE DRAGED INTO THIS! The situation is being rectified like ADULTS by both parties. I hope you can leave it to them & do the same!'
'you guys do realize that @Zendaya is my friend right?'
'Im giving everyone involved 24 hours to make it right or the world will hear how I really feel,' Kelly continued in another tweet. 'contactually Im not allowed to speak!'
Meanwhile, following Rancic's offensive statements Zendaya hit back with a social media note of her own.
Police brutality: The moment Fashion Police star Giuliana said Zendaya looks like she 'smelled of weed' because of her dreadlocks on Monday night's show
'There is a fine line between what is funny and disrespectful,' she wrote. 'Someone said something about my hair at the Oscars that left me in awe. Not because I was relishing in rave outfit reviews, but because I was hit with ignorant slurs and pure disrespect.
'To say that an 18-year-old young woman with locs must smell of patchouli oil or 'weed' is not only a large stereotype but outrageously offensive. I don't usually feel the need to respond to negative things but certain remarks cannot go unchecked.'
The Disney star then listed a number of personal luminaries who wear dreadlocks, and included her father, brother, best friend and little cousins.
She claimed there was 'already harsh criticism of African American hair in society without the help of others who chose to judge people based on the curl of their hair.'
She demanded Rancic 'contemplate a little before opening your mouth so quickly to judge'.
'My wearing my hair in locs on an Oscar red carpet was to showcase them in a positive light, to remind people of color that our hair is good enough. To me locs are a symbol of strength and beauty, almost like a lion's mane,' She added.
Furious: The starlet said there was 'harsh criticism of African American hair in the society'
Zendaya took to Instagram to share her thoughts
Zendaya's fans were quick to support her on Twitter, with some posting demands for apologies from E!, while other posted funny memes.
However the 40-year-old tv personality apologized, for offending her, but refuted claims that what she had said was racist.
'Dear @Zendaya, I'm sorry I offended you and others,' she tweeted. 'I was referring to a bohemian chic look. Had NOTHING to do with race and NEVER would!!!'
This is not the first time Fashion Police has come under fore for controversial remarks.
Joan Rivers would frequently call out celebrities on the program, and often draw the ire of those in the entertainment industry.
After the 203 Oscars, Rivers said of Heidi Klum's dress; 'The last time a German looked this hot was when they were pushing Jews into the ovens.'
Rivers also attacked Kim Kardashian and Kanye West's daughter North West, saying; 'That baby is ugly ... I've never seen a 6-month-old so desperately in need of a waxing.'
Many women were upset when she complimented a look worn by teenager AnnaSophia Robb by saying; 'This outfit is so young and fresh and sexy. It just screams "date rape."'
Rancic meanwhile has been a staple on E! for years now, and the host of E! News since 2005, back when she was Guiliana DePandi.
She has been a panelist on Fashion Police since it premiered in 2010.
In 2011 she revealed she had breast cancer, and would later undergo a double mastectomy.
She also stared on the reality show Guiliana and Bill with husband Bill Rancic for six seasons, in which cameras followed her as she attempted to get pregnant.
The couple welcomed a son Edward in 2012 via gestational carrier.
RANCIC RALLIES FOR RIVERS
Zendaya wasn't the only entity Giuliana had a go at - she also flipped the bird at the entire Academy for leaving Fashion Police Commissioner Joan Rivers out of the In Memoriam segment during Sunday's Oscars.
'Screw them anyway for leaving Joan out of the In Memoriam segment,' She said brandishing both middle fingers. 'So f**k you, Oscar.'
Rancic's sudden outburst came without warning as she was criticizing the Academy for the white photo backdrop it provided, which prevented Lupita Nyong'o's white gown from 'popping'. 'Let's all blame them. Let's blame them for everything,' she shouted.
Her fashion police co-hosts Kelly Osbourne, Brad Goreski - and the audience - cheered in agreement, while Kathy Griffin added it was a 'miss' for the Academy.
'She was in feature films and I thought that was an odd miss,' she added. 'It's almost like even posthumously, she's still a rebel.'