Clinton, who was showcasing his renowned eclectic fashion taste in a sparkle-encrusted cap and matching pink coat during the ceremony on Friday, said receiving a star in the category of recording made him "proud as hell".
It comes after the 82-year-old was inducted into the Rock and Roll Hall of Fame in 1997 and received the Grammy Lifetime Achievement Award in 2019 for his instrumental impact in shaping the sound of funk music.
Clinton is also in the Rock and Roll Hall of Fame and has a Grammy Lifetime Achievement Award. (EPA PHOTO)
Honouring his star on the Walk of Fame, Kiedis took to the stage in Los Angeles on Friday and described Clinton as an American "national treasure", before singing a "small spiritual hymn", the 2006 Parliament-Funkadelic hit Make My Funk The P-Funk, with the audience joining in with the lyrics.
After starting his career with The Parliaments which scored a major hit in 1967 with (I Wanna) Testify, Clinton spawned Funkadelic and achieved several influential albums including Maggot Brain and America Eats Its Young.
One of Clinton's most popular songs included the 1982 release of Atomic Dog, which featured in films including 102 Dalmatians and Trolls World Tour.
Meanwhile, he also collaborated with global stars including Kendrick Lamar on his Grammy-winning album To Pimp A Butterfly and Prince's 1990 companion album for the film Graffiti Bridge.
"I was encouraged by rappers like Snoop, (Dr) Dre ... OutKast, Digital Underground, Tupac (Shakur), Kendrick (Lamar) - by the rock acts like the Red Hot Chili Peppers, Prince, all those who said the funk inspired them in one way or the other," Clinton said during the ceremony.
The Red Hot Chili Peppers frontman said Clinton and Parliament-Funkadelic had been an inspiration. (AP PHOTO)
"I was inspired to go on in my fight for the musical rights, not just for me but for all these rights that have been mishandled."
During his speech, Kiedis, 61, spoke about the impact Clinton had on him and his music growing up, saying "seeds were planted" when he went to see Parliament-Funkadelic perform.
Renowned civil rights lawyer Ben Crump gave a speech at the ceremony, as well as US songwriter Janie Bradford.