The event marked the second in a series created to celebrate "the music that's contributed to the life of this nation and chronicled the history of our people," Obama noted.
"We began this tradition last month with an evening of jazz. And tonight, we celebrate another uniquely American art form: country music," he added.
The commander in chief thanked Krauss and Paisley for participating earlier in the day in a country music workshop for about 120 members of "the next generation of young musicians."
Obama also told the audience he enjoys country music even though he is regarded as a "city boy."
"I do appreciate listening to country music because, like all Americans, I appreciate the broad and indelible impact that country has had on our nation," he said. "It's touched countless lives, it's influenced all genres of music, it's helped us make the American people more hopeful, it's captured our restlessness and resilience, and told so much of our story in the process."