The 67-year-old actress, who is the great grand-niece of noted poet Rabindranath Tagore, joined leading figures from the world of foreign affairs, education and almost 1000 students at the ceremony to collect the award.
"It is indeed a privilege to be conferred an Honorary Degree by Edinburgh Napier University. It recognises the significant influence of Indian Cinema on the global cultural arena and the small role that I have played in its history. As we celebrate a hundred years of Indian Cinema, this is both a happy and humbling moment," Sharmila said while accepting her Doctorate.
The honour comes just months after the University's Institute for Creative Industries opened The Scottish Centre for Tagore Studies (ScoTs), the first centre of its kind in the UK.
ScoTs promotes Indian culture, education, philosophy, art and literature by highlighting the legacy of Rabindranath Tagore, the first Asian to win the Nobel Prize for literature in 1913.
With a glittering career spanning six decades, Sharmila has won National Film Awards and Filmfare awards for her performances in films like 'Apur Sansar', 'Kashmir Ki Kali', 'An Evening in Paris', 'Aradhana'and 'Amar Prem'.
"Sharmila has had an astonishing career and her films are enjoyed all over the world. She is an excellent ambassador for Indian culture and at the same time, through her various charity endeavours, is a strong advocate for the educational rights of children in India," said Professor Dame Joan Stringer, Principal and Vice-Chancellor of Edinburgh Napier University.