The producer and ex-Beats entrepreneur, 59, was joined by protégés Eminem, Snoop Dogg and 50 Cent for the celebration.
Born Andre Young in southern LA, Dre was a founder member of gangsta rap outfit NWA and later had solo success with his 1992 album The Chronic.
In 2010, Rolling Stone magazine ranked him as the 56th greatest artist of all time.
Dre said of his star: “Growing up in Compton, I never imagined that I would one day be represented here among some of my childhood heroes.
“I’m most proud of elevating the sound and clarity of how we experience hip-hop. It is one of my greatest achievements.”
“I love that this honor is unique to Los Angeles and brings fans from all over the world to connect with their favorite artists.
“I’ll be here forever.”
Alongside producer Jimmy Iovine, he is also co-creator of Beats By Dre which was eventually bought by Apple in May 2014 for $3billion.
According to Celebrity Net Worth, Dr Dre earned an estimated $750million from his 25% stake in the company from the deal.