The 'Get Hard' actor was joined by his wife Viveca Paulin, 45, and their three sons, Magnus, 11, Mattias, eight, and Axel, five, as he was honoured with one of the famous spots and was thrilled to accept the accolade in recognition of his successful career.
He told E! News: "It's one of those very surreal moments where it's a place that you've visited a lot growing up, especially growing up in Southern California, and looking at all the names but I don't think you'd ever envision that one day you'll be in that same company."
During the ceremony, Will's 'Step Brothers' and 'Talladega Nights: The Ballad of Ricky Bobby' co-star John C. Reilly, and former 'Saturday Night Live' castmate Molly Shannon paid tribute to the star.
Before reciting a poem about Will ending up on the street, John joked: "Maybe some day, in 50 years, people will look down on the sidewalk and say the things that we say today about some of these people, 'Who the f**k is this guy?' "But I hope not.
"This man is deserving of all the praise we give him today."
Meanwhile, Molly recalled her 47-year-old pal's concerns he wouldn't make it as an actor.
She told the assembled crowd: "He said, 'I don't know, what if acting doesn't work out? What if animation totally takes over and they don't need real human actors?'
"I said, 'I don't think that's going to happen', and he said, 'I could just have a simple life, driving a truck or living on a farm and driving that truck on that farm.' So, he had a back-up plan."