The 75-year-old Oscar winner and fitness pioneer placed her hand and footprints in cement next to her father's outside Hollywood's TCL Chinese Theater.
"What is particularly meaningful to me is that I'm going to be right next to my dad, right over there and I can feel his presence right now," said Fonda during the ceremony. "And he used to say 'Jane, don't let this town walk all over you'. Well dad, right now the town can walk all over both of us forever," she said.
The honor is a reflection of Fonda's career, which hasn't slowed since she returned to acting in 2005 following a 15-year hiatus.
Fonda also presented a special screening of the 1981 film she made with her dad, Henry Fonda, known as "On Golden Pond."
Fonda won the first of her two best actress Oscars in 1972 for her portrayal of a New York City prostitute who assists a detective played by Donald Sutherland in the search for a missing Pennsylvania corporate executive played by Robert Milli. Her second came in 1979 for the Vietnam War-era drama "Coming Home."
Fonda received four other best actress Oscar nominations -- "They Shoot Horses, Don't They?" "Julia," "The China Syndrome" and "The Morning After" and a best supporting actress nomination for "On Golden Pond."
The hand and footprint ceremony and cinematic tribute was part of the 2013 TCM Classic Film Festival, which is honoring Fonda.
Fonda has two films set to be released later this year, "The Butler," where she portrays former first lady Nancy Reagan, and "Better Living Through Chemistry."
Grauman's Chinese Theatre was recently purchased by Chinese electronics firm TLC, resulting in a name change.
CNS contributed to this report.