According to The Daily Telegraph, the actor received the prize in Paris on Thursday for his contributions to the global film industry.
French President Nicolas Sarkozy was on hand to personally present Redford with the award.
"I know 65 million French people who would like to be in my shoes right now," Sarkozy jested.
He continued: "Those who love cinema long remember... [your] films, which we watch and rewatch with the same emotion each time… We need friends like you to have the courage to try to wake up people's consciousness."
In his acceptance speech, Redford thanked the French people and reminisced about his own memories about living in the country after finishing college.
"I didn't know anything about my own country, I was naive and narrow-minded and it was the French students... who opened my eyes and gave me a real education," the actor remarked.
He concluded: "I will continue with my commitment to make cinema that opens people's spirits and goes beyond borders, and this prize will help me do that."
Previous recipients of the Legion Of Honour include director Akira Kurosawa, actor Jerry Lewis and jazz musician Miles Davis.