Author Terry Pratchett, jazz star Courtney Pine and singer Robert Plant are among the entertainment figures in the New Year Honours list.
Sir Terry, 60, said he was "flabbergasted" to be knighted for his services to literature.
Saxophonist Pine becomes a CBE, as does Led Zeppelin frontman Plant.
Frost/Nixon actor Michael Sheen becomes an OBE, actress Liz Smith is appointed an MBE, and Jenny Abramsky, former head of BBC radio, is made a dame.
'Delighted'
Sir Terry , 60, best known for his hugely popular Discworld series of comic fantasy novels, has sold more than 55 million books worldwide.
He said: "There are times when phrases such as 'totally astonished' just don't do the job.
"I am of course delighted and honoured and, needless to say, flabbergasted."
Last year Sir Terry was diagnosed with early-onset Alzheimer's disease and has since campaigned to raise awareness of the condition.
Neil Hunt, chief executive of the Alzheimer's Society, said: "I would like to congratulate Terry on this fantastic and well-deserved achievement.
"Terry is not only a successful author and well-loved public figure; he is also playing a key role in fighting the misunderstanding and stigma surrounding dementia."
He's one of my favourite writers, and, well, he rules
