The Monster-in-Law actress's life and career will be saluted at a special American Film Institute ceremony on June 5, 2014 in Los Angeles.
Jane will be following in the footsteps of her late father Henry Fonda, who was given the Life Achievement Award in 1978.
She will be the 42nd recipient of the prestigious film industry prize. Previous honourees include Shirley MacLaine, Mel Brooks, Orson Welles, Fred Astaire, Clint Eastwood and Sir Sean Connery.
TNT will air highlights of the ceremony later in 2014.
Fonda has received many acting honours during her career, including two Academy Awards for Coming Home and Klute.
She also has two BAFTAs for The China Syndrome and Julia.
Fonda is currently starring in Aaron Sorkin's series The Newsroom, which airs on HBO in the US and Sky Atlantic in the UK.
Watch Jane Fonda win the Oscar for Klute below: