The Tapestry musician will be given the prestigious gong at an all-star gala in Los Angeles on May 15.
King will be honoured for her life-long contributions to music, which includes writing hit songs with ex-husband Gerry Goffin for artists like Aretha Franklin, The Byrds and Dusty Springfield.
Paul Simon, Beach Boy Brian Wilson and James Taylor are among the previous recipients of the BMI Icon Award.
King recently completed work on her autobiography Natural Woman, which takes its name from her hit single '(You Make Me Feel Like) A Natural Woman'.
Her most recent album A Holiday Carol was released last November.
Watch Carole King & James Taylor perform 'You've Got A Friend' below: