The Kinks frontman Ray Davies felt a mixture of "joy" and "humility" on discovering he had been made a knight in the New Year Honours.
He was the lead singer and songwriter for the band, penning classics such as You Really Got Me, Waterloo Sunset and Sunny Afternoon.
The 72-year-old, who has won a string of industry awards, is being recognised for services to the arts.
Ray, born in Muswell Hill, north London, said: "Initially I felt a mixture of surprise, humility, joy and a bit embarrassed but after thinking about it, I accept this for my family and fans as well as everyone who has inspired me to write."
Originally known as The Ravens, The Kinks were formed at the end of 1963 with his brother Dave, Peter Quaife and then Mick Avory.
Ray once stated that his intention was to write for "waitresses and divorced people" but his work has been admired by the spectrum of British critics.
It gained a large following among the gay and lesbian community after works like Lola and See My Friend.
Despite a string of successes, Ray attempted to kill himself in 1973, overdosing on valium and Dom Perignon. His press secretary revived him by throwing him into a bath.
In January 2004 he was shot in the leg while in New Orleans, and three months later limped to collect his CBE from the Queen at Buckingham Palace.
Ray was shot by a mugger he chased after his girlfriend's bag was snatched.
Speaking after being given his CBE, he said: "This is for the people who supported my music over the years. I'm kind of reluctant to collect rewards. I usually back out of ceremonies. I'm kind of a shy person."
The Kinks - inducted into the Rock and Roll Hall of Fame in 1990 - were one of the most influential bands of the 1960s. The group's influence on acts such as Oasis and Blur earned Ray the accolade Godfather of Britpop.
He has had a difficult relationship with his brother, who once described a pattern of "jealousy, hatred and envy" between the pair before the group disbanded in 1996.
But last year, and for the first time in almost 20 years, the siblings were reunited as they performed You Really Got Me at London's Islington Assembly Hall.
Ray's musical Come Dancing won the Mobius Award for best Off-West End production in 2009 and his musical Sunny Afternoon won four Olivier Awards.
He also gives his name to song writing workshops, helping to give children from disadvantaged backgrounds the chance to express themselves and encouraging them to experience The Kinks' old studio.
Ray has composed several pioneering rock operas including Arthur and The Village Green Preservation Society, and has also directed films and TV shows.