The $200,000 sculpture was unveiled Wednesday not far from where the rapper was gunned down in 1996, the Las Vegas Review-Journal reported Thursday. His killing remains unsolved.
The sculpture took six months to make and depicts the rapper as most fans remember him -- a bandana tied around his head, low riding baggy blue jeans and a bare chest.
"I thought my nephew was going to blink," his aunt, Gloria Cox, told the newspaper. "It's beautiful ... perfect. It captures his intensity."
The unveiling comes as Las Vegas entertainment and law enforcement officials debate the merits of rap concerts. Police say the concerts bring an element of danger to the strip, while many venue owners argue it is an issue of freedom of speech and expression.
Shakur is the first rapper to be honored in wax by Madame Tussauds.