"He is one of those people, rare in entertainment, who America loves," said winger-songwriter Randy Newman, who spoke at the morning ceremony in front of the Capitol Records building on Vine Street. "There have been less than 10 in the century, people like Bing Crosby and Judy Garland."
That was evident by the large turnout of fans at the ceremony. Diamond said L.A. has always been supportive.
Diamond said he wanted to "thank Los Angeles for taking this kid from Brooklyn to their hearts and for being so wonderful to me. I thank you all so much."
During his career, Diamond sold more than 125 million albums worldwide and had 37 top 10 singles. His greatest hits include "Cherry, Cherry," "Kentucky Woman," "Sweet Caroline," "Love on the Rocks" and "Heartlight."
Diamond's star - the 2,475th one awarded - coincides with his return to the Greek Theatre 40 years after he recorded "Hot August Night."
He was inducted into the Rock and Roll Hall of Fame in 2011.
City News Service contributed to this report.