The 59-year-old Motown star has been made a Commander of the Arts and Letters by the French Culture Minister Frederic Mitterand.
The US singer received the award in memory of his mother and said: “I receive this honour in memory of my mother and in memory of all of those that have made it possible for me to stand here today.”
He was originally named to receive the award in 1981, but officials have said that it was scheduling conflicts that led to the delay of his formal decoration.
Mr Mitterrand said to Wonder: “As citizen, administrator and culture minister, I just called to say we love you.”
After the ceremony, Wonder performed wearing his award at France’s biggest musical awards show yesterday.
Previous winners of the award include Bond star, Roger Moore, Dennis Hopper and punk singer Patti Smith.

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