Former Liverpool star and manager has been knighted in Queen Elizabeth II's Birthday Honours list.
The 67-year-old, who won the European Cup three times while playing for the Reds and later managed the club, was also recognised for supporting Hillsborough victims and his charity work with the Marina Dalglish Appeal, Xinhua news agency quoted the BBC as reporting on Friday.
"For the family, it's a huge honor," he said.
Dalglish, Scotland's most-capped player, is the only sporting figure knighted in the Queen's Birthday Honours list.
Having won three titles as Liverpool manager, he left in 1991, leading Blackburn to the Premier League title four years later. He also managed Newcastle and Celtic, and had a second spell as Liverpool boss from 2011-2012.
World heavyweight boxing champion Anthony Joshua and two-time Olympic skeleton champion Lizzy Yarnold are appointed OBEs, as is Bournemouth's former England striker Jermain Defoe.
Craig Reedie, the Scottish president of the World Anti-Doping Agency who was knighted in 2005, has become a knight grand cross.
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