The rock legend received the Nobel prize in Literature "for having created new poetic expressions within the great American song tradition."
"His voice is humanity's voice and this is an honour for humanity," National Award winning filmmaker Goutam Ghose said.
Musician-filmmaker Anjan Dutt said the musical fraternity had high hopes that the 75-year-old rock legend would bag the top honour soon.
"We all expected this for a long time. Those who love Bob Dylan's songs or good music were waiting for this for the last four to five years. It was a bad feeling. So this had to happen. He (Dylan) should have got it either for peace or literature," said Dutt, known for helming "The Bong Connection".
Singer Usha Uthup said that the "Blowin' In The Wind" musician has always been contemporary and relevant.
"He has influenced generations, he is always contemporary and relevant. The entire fraternity of musicians will be the happiest," Uthup said.
Noted Bengali actor Parambrata Chatterjee vouched for turning his poems into a book.
"Dylan's poems can be turned into a book. He is not just a songwriter. He is much more than that. The award is a recognition of the fact that the field of literature is expanding," Chatterjee, the "Kahaani" actor, said.
"He is a master of songwriting. There was speculation for a very long time that he could get the prize. This is a big example for us," popular Bengali band frontman Anindya Chattopadhyay said.
In Bengal, Dylan's music has a big influence on much of the repertoire of musicians, said songwriter and political activist Kabir Suman, who has translated his "Blowin' in the Wind" into Bengali as "Kotota Poth Perole" and also other Dylan's cult songs.
Much of Dylan's best known work dates from the 1960s. Songs like "Blowin' in the Wind" and "The Times They are A-Changin'" became anthems of the anti-war and civil rights movements.