The 40-year-old actress says her family makes her feel beautiful. In fact, Paltrow says her kids, 8-year-old Apple and 7-year-old Moses, don't see her as anything but mom.
Her motherly image had a lot to do with her new title, according to People's managing editor Larry Hackett. Appearing on "Good Morning America" Wednesday, Hackett said the magazine chose Paltrow because she is relatable as a wife and mother who balances her personal life and professional career. Hackett added that she is family-oriented, grounded, close to her mother and looks great.
In the magazine's cover story, Paltrow credits her daily two-hour workout routine for keeping her looking youthful, less tired and feeling strong. She says she doesn't believe in depriving herself, and that's why she will indulge in things she loves, like pasta.
Paltrow is married to Coldplay rocker Chris Martin.
Also on the Most Beautiful Women list are actresses Kerry Washington, Connie Britton and Linda Gray. Beyonce and Jennifer Lopez were previously named World's Most Beautiful by People.
The Associated Press and ABC News contributed to this report.