Danson became a household name as bartender Sam Malone in the long-running NBC sitcom Cheers, which went off the air in 1993.
His star, the 2,148th dedicated along the famous walkway, was planted in front of the Galaxy Theatre/Hollywood Entertainment Museum. The museum is home to the Cheers set, featuring the bar tended by Malone.
Danson's wife, actress Mary Steenburgen, knelt alongside the actor during the unveiling.
"He is to comedy what Fred Astaire is to dance," Steenburgen said. "When you add my husband's name to the Walk of Fame you are doing something special. To silly men everywhere, this represents you."
The 300 people gathered to witness the unveiling included former Cheers stars Kelsey Grammer, Kirstie Alley and George Wendt.
"I'm happy he got his star and I'm more happy that he got it four years after I did," Alley said.
Danson now stars in the CBS series Becker, in which he plays a malcontent physician who smokes and drinks. He also starred in the films The Onion Field and Body Heat.
For more on the Hollywood Walk of Fame, see http://chamber.hollywood.com/walkoffame.