The Get Carter star, who was brought up in the U.K. capital, was handed the London Legend award - voted for by youngsters in the city to find their top role model.
And Caine was overwhelmed with the prize, telling the audience at Alexandra Palace it is "the greatest honour" he has even been given.
He told the crowd, "This is the greatest honour I have received as it is not voted for by the film industry but by the young people of London. I happen to think every Londoner is a legend. This place is a legend."
Alexandra Burke, winner of British reality show The X Factor last year (08), performed at the ceremony, while R&B star Lemar hosted the bash.