Katie Holmes, Penelope Cruz, Jessica Biel, Cameron Diaz, Drew Barrymore, Reese Witherspoon and Ali Larter are other sharp dressers singled out in the magazine's "Best & Worst Dressed" double issue, on newsstands Friday.
"Whether classic or continental, girl-next-door or glam," these celebs made all the right fashion moves throughout the year, the magazine said.
Don't forget the men. David Beckham, Terrence Howard, Johnny Depp, Brad Pitt and George Clooney meet People's standards for always stepping out in style, whether they're wearing tuxedos or T-shirts.
Victoria Beckham, Kate Moss, Lily Allen, Emma Watson and Kate Middleton get the nod for their bold and unexpected sense of style in a special "British Accent" section.
Among the fashion moments the magazine would like to forget: Sienna Miller's black hot pants and tights and Avril Lavigne's pairing of a frilly dress and combat boots.