The Chicago actress and Douglas took their kids Dylan and Carys to the ceremony at Buckingham Palace, where she was honoured as a Commander of the Order of the British Empire for her charity work and services to the film industry.
The British royal was "concerned" over Douglas, who was treated for grade four throat cancer last year (10).
And Zeta-Jones has revealed the prince asked after the Wall Street actor when he pinned the medal on to her dress.
She tells Britain's Daily Mail, "Obviously we talked about Michael. The last time I saw His Royal Highness, Michael had just got his treatment so he was concerned, but he was very happy to hear that he's well on the road to recovery. His recovery is going great and the tumour is gone. It's the beginning of another road, but it is a better one. The past year has tested us.
"It means a lot to come home with my family and to be honoured in this way. It's going next to my Oscar and my Bafta. I'm very patriotic and I can't wait for the Royal Wedding."