The Sri Lankan spin great was honoured during the innings break of the India versus Sri Lanka Champions Trophy match at The Oval.
Muralidaran was awarded the honour along with Arthur Morris, George Lohmann and Karen Rolton by fellow ICC Cricket Hall of Famers and members of the media.
He became the first player from Sri Lanka and the 83rd overall to be inducted into the Hall of Fame when ICC CEO Dave Richardson presented him with a commemorative framed cap.
"I thank the ICC for making this possible because this is a moment I will cherish throughout life," he added.
Richardson added: "Murali's record speaks for itself. His control of line, pace and length coupled with his ability to spin the ball prodigiously are legendary. Once he developed the "doosra" he became almost unplayable.
"A character popular with fellow players and fans alike, he not only helped raise the profile of Sri Lankan cricket but was a player people came out to watch the world over.
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