The honour will be presented at Santa Barbara's historic Arlington Theatre, following a career-retrospective conversation, on February 1 as part of the fest's 33rd edition, which is set to run from January 31 to February 10, reported Variety.
The Cinema Vanguard Award recognises filmmakers "who have forged their own path, taking artists risks and making a significant and unique contribution to film."
"Willem Dafoe has brought countless unforgettable characters to the big screen. His role in 'The Florida Project' perfectly embodies his talent and imagination. It is an honour to celebrate his work with the Cinema Vanguard Award," SBIFF executive director Roger Durling said in a statement.
The festival is also set to honour Judi Dench, a best actress contender for "Victoria & Abdul", with its Kirk Douglas Award for Excellence in Film at a pre-fest ceremony on November 30.