Prof Yunus received the honorary doctorate degree from the university's chancellor at a function held at the UKM auditorium in Kuala Lumpur.
The university authorities said the honorary degree was conferred upon Prof Yunus in recognition of his unique contribution to the promotion of social entrepreneurship.
The chief adviser then delivered a commemorative lecture to the students of the university.
When Prof Yunus arrived at the venue on Wednesday morning, the university's chancellor welcomed him.
Prominent Malaysian academics, policymakers, university teachers and students, and the entourage of the chief adviser were present at the event.
