His Irish parents Dan and Maureen Murphy travelled to Main for the ceremony.
His father told the Irish Echo newspaper: "I'm really proud. It was Michael's Seals who bagged the beast."
"Michael would have been 35 this Saturday," he said, adding that his son would have been proud of the Pakistan mission that killed Osama Bin Laden.
On Saturday the destroyer USS Michael Murphy was launched at the Bath Ironworks shipyard.
Admiral Eric Olson, currently the commander of US Special Forces Command was in attendance.
Lt Murphy was leading a four man team that was ambushed by u to 40 Taliban members. He was killed when he left cover to try and get a radio signal so he could call for help.
During the firefight in which Lt Murphy was killed, two other soldiers also died and one survived.
The men were all awarded the navy cross, making them the most decorated unit in the history of the Navy Seals.