The 77-year-old came on the stage on a wheelchair, but he smiled and folded his hands in reverence after receiving the honour -- the third for Indian cinema's popular Kapoor family.
A special audio-visual celebrating Shashi's film and personal journey was also screened at the event. It featured Amitabh, Shabana Azmi, Sharmila Tagore, Rishi Kapoor, Randhir Kapoor talking about the cinematic icon, who also had an equal penchant for theatre.
Shashi started acting in films as a child artist in the late 1940s. His best known performances as child artist were in "Aag" (1948) and "Awaara" (1951), where he played the younger version of the character played by his elder brother Raj Kapoor.
Best known for his nuanced performance in memorable films like "Satyam Shivam Sundaram", "Trishul", "Kabhi Kabhie", "Vijeta" and "Kalyug", Shashi Kapoor has been staying away from the limelight since the late 1990s.
Shashi Kapoor's family members were present for the occasion, along with megastar Amitabh Bachchan and Abhishek Bachchan.
(With inputs from agencies)