Dame Shirley, 86, was appointed to the Order of the Companions of Honour for her services to music.
The Welsh singer, best known for her James Bond theme songs including Goldfinger and Diamonds Are Forever, became the 64th living member of the order, a special status held by no more than 65 people at any one time.
"Entertaining audiences for over 70 years has been a privilege," she said.
"My heart is full of emotion and I am truly humbled."
Sir Ridley, whose films include Gladiator, Alien and more recently Napoleon, was awarded for his services to the UK film industry. He was made a Knight Grand Cross, upgrading his previous knighthood.
Other well-known names in entertainment on the list included The Great British Bake Off judge Paul Hollywood, who was honoured for services to baking and broadcasting and Game of Thrones actress Emilia Clarke, who were made Members of the Order of the British Empire, or MBE, for their work founding a brain injury recovery charity.
Clarke survived two brain haemorrhages and started the SameYou charity to raise awareness about brain injuries and help advocate for better treatments and rehabilitation for survivors.
Sir Ridley Scott has been made a Knight Grand Cross, upgrading his previous knighthood. (AP PHOTO)
In sport, Mary Earps - the goalkeeper for England's women's soccer team - was honoured along with Lioness players Millie Bright and Lauren Hemp for their part in helping the Lionesses reach the women's World Cup final. England lost 1-0 to Spain in the final in Sydney.
In all, this year's list includes a 1227 recipients, with 48 per cent of them women. About 14 per cent came from an ethnic minority background.
Many on the list are ordinary people who have served their communities. They include nine-year-old Tony Hudgell, the youngest recipient, who was awarded a British Empire Medal for services to the prevention of child abuse.
Rizwan Javed, a 33-year-old train station assistant, was awarded for helping save 29 vulnerable people at risk of ending their lives at the railway.
British monarchs have awarded honours as part of orders of chivalry since the Middle Ages. In modern times, nominations are submitted to the government's Cabinet Office and vetted by a committee before being passed on to the prime minister and King Charles III.
