He was a regular summer visitor to the island.
The John Belushi Larger Than Life Award is a tribute to Belushi's brief love affair with the exclusive island retreat, The Boston Globe said.
Belushi bought a beach house from former Defense Secretary Robert McNamara that is now owned by his brother, actor Jim Belushi. He was buried on the island after his death in 1982 at the age of 33 and his widow, Judy Belushi Pisano, still lives there.
The comedy festival will also pay tribute to Belushi with a screening of his hit film "Blues Brothers" and some of his best-known skits from NBC's "Saturday Night Live."