The award was given out by World Peace and Prosperity Foundation Chairman Prince Ali Khan, at the Cholmondeley Room of the House of Lords on Monday night.
Malala is being treated at a British hospital after she was shot in the head by Taliban militants.
The award was received on her behalf by Deputy High Commissioner of Pakistan to the UK, S Zulfiqar Gardezi.
"It is Malala or her family who should have received the award. In their absence, I will pass it on to her," he said.
Malala was flown to the UK on October 15 and admitted at the Queen Elizabeth Hospital, Birmingham where she is recovering.
Other recipients of the award included a Bishop of London, a distinguished British Muslim Psychiatrist, a distinguished Turkish academic and MP, and eight year old Josh Altman, European Chess Bronze medalist.
Prince Ali Khan, Founder Chairman of the World Peace and Prosperity Foundation, said the foundation recognised outstanding work in various walks of life and to promote world peace and prosperity.