The UN refugee agency said it was giving its highest award to former Chancellor Angela Merkel for her decision to welcome more than a million refugees, mostly from Syria, into Germany.
Merkel — whose award includes a $150,000 (€151,700) prize — pursued the policy despite some criticism both at home and abroad.
What did UN say?
The prize selection committee underlined that Merkel had been the driving force behind Germany's efforts to receive and integrate refugees.
"By helping more than a million refugees to survive and rebuild, Angela Merkel displayed great moral and political courage," UN refugee agency chief Filippo Grandi said in a statement.
"It was true leadership, appealing to our common humanity, standing firm against those who preached fear and discrimination," he said.
"She showed what can be achieved when politicians take the right course of action and work to find solutions to the world's challenges rather than simply shift responsibility to others."
What happened at the time?
Germany received about 1.2 million refugees and migrants in 2015 and 2016, when the Syrian Civil War was at its height.
Merkel's decision not to close the door to migrants was linked to a rise in support for the far-right Alternative for Germany party. The former chancellor was also criticized by some governments for being too welcoming to refugees.
Her policy came as some EU member states were closing borders to refugees.
The UNHCR says its Nansen Refugee Award is awarded to individuals, groups or organizations that strive, "above and beyond the call of duty," to protect refugees and other displaced and stateless people.
The annual award was founded in 1954 to celebrate Fridtjof Nansen, a Norwegian scientist, explorer and diplomat who was the first commissioner for refugees in the UN's predecessor, the League of Nations.
Last year's plaudit went to the Jeel Albena Association for Humanitarian Development in Yemen, for its work to support displaced Yemenis.