The ceremony took place in front of the W Hollywood Hotel on Hollywood Boulevard.
Organizers said the star honors Sandler's career, which includes film grosses of more than $3 billion worldwide. Sandler's star was the 2,431th star on the famed walkway.
Actors Henry Winkler and Kevin James, who have starred opposite Sandler in "The Waterboy" and "Grown Ups" respectively, spoke at the star ceremony.
"It is a big day for Adam and me as well," James said. "I have just been added to the Wall of Fame at Tito's Tacos."
"This is a big deal. I feel honored and can't believe this has happened in my life," Sandler said as he held his youngest daughter Sunny in his arms.
Sandler began working as a standup comedian at the age of 17 and was hired as a writer on "Saturday Night Live."
He soon became a cast member and went on to movies.
Sandler's latest film, "Just Go With It," also starring Jennifer Aniston, is scheduled to debut Feb. 11.
City News Service contributed to this report.