Nelson was the first ACL performer in 1974 and now he's the first to be inaugurated into the hall of fame.
Fellow Texan, actor Matthew McConaughey, presented Nelson with the honor.
“There would be no Austin City Limits without Willie Nelson,” McConaughey said.
“It means a lot. It’s Austin City Limits and Austin (Texas) -- the music capital of the world,” Nelson said prior to the induction.
Also included in the inaugural hall of fame class were Stevie Ray Vaughan and Double Trouble, ACL producer Bill Arhos, and former University of Texas football coach Darrell Royal.