Salman Rushdie, the writer who was sent death threats over his controversial novel The Satanic Verses, said he was "thrilled and humbled" to be made a knight.
He was among those from the worlds of arts, sport and showbiz who were recognised for their achievements.
Arguably the most colourful star to be honoured was Barry Humphries, whose CBE is in recognition of his famous alter egos, Dame Edna Everage and Sir Les Patterson, Australia's lecherous, dribbling and offensive cultural attache to Britain.
In the sporting arena, Manchester United footballer Ryan Giggs, who has just retired from the Welsh national team and Teddy Sheringham, the West Ham striker and former England star received an OBE and MBE respectively. But David Beckham failed to make it on to the list for the second time despite speculation he would be knighted.
Controversy surrounds the decision to knight England cricketer Ian Botham. The former player, already an OBE, was honoured again in recognition of both his cricketing career and his numerous long-distance charity walks which have raised millions of pounds.
However the former BBC Sports Personality of the Year has at times had a less than positive hell-raising reputation.
There was an OBE for Peter Sallis, the actor perhaps best-known for his role as the hapless widower Norman Clegg in the BBC sitcom Last of the Summer Wine. He first appeared in the long-running show in 1973. More recently Sallis, now 87, has won new fans as the voice of Wallace in the Wallace and Gromit films.
Actress Sylvia Syms also becomes an OBE for her numerous film roles, especially in the 1950s and 1960s including English civil war story, The Moonraker (1958), The Punch and Judy Man (1962) in which she played Tony Hancock's wife, and The Tamarind Seed.
Now 73, last year she played Queen Elizabeth the Queen Mother in The Queen and she has portrayed Margaret Thatcher more than once on the stage and TV.
Comedy actor Bill Pertwee, who was awarded an MBE, is a veteran of three Carry On films and the Dad's Army TV series. He is president of the Dad's Army Appreciation Society and author of a book on the television legend.
Popular TV historian David Starkey becomes a CBE for services to history despite, or perhaps because of, his sharp, acerbic style which once led to him being dubbed "the rudest man in Britain".
Starkey said afterwards that the remark increased his value as a broadcaster, writer and speaker many times over.
Barbara Taylor Bradford, the best-selling novelist who began her writing career in the typing pool of the Yorkshire Evening Post, becomes an OBE.
Her first novel, A Woman of Substance, became an enduring best-seller and was followed by 20 others, together selling more than 70 million copies worldwide in more than 90 countries and 40 languages.
A CBE was awarded to Stephen Poliakoff, the acclaimed British playwright, director and scriptwriter who has enjoyed notable TV successes and won awards for his work She's Been Away at the Venice Film Festival.
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