The legendary singer-songwriter was given the Special Citation In Music honour in recognition of his "profound impact on popular music and American culture".
Prize administrator Sig Gissler said: "This award reflects the efforts of the Pulitzer board to broaden the scope of the music prize, and encompass the full range of excellence in American music. It also recognises Mr. Dylan's lyrical compositions of extraordinary poetic power."
This is the first time the Pulitzer panel have recognised a rock musician for the $10,000 prize.
Previous recipients of the music award include legendary composer George Gershwin and innovative jazz musician John Coltrane.
Dylan, born Robert Allen Zimmerman, has been a huge force in music for more than five decades.
His life and career were recently portrayed by Cate Blanchett, Heath Ledger and Richard Gere in Todd Haynes' hit film 'I'm Not There'.
His iconic songs include 'Blowin' In The Wind', 'Positively 4th Street' and 'Knockin' On Heaven's Door'.
Tom Petty, who worked with Dylan in the Traveling Wilburys band, said: "To even begin to name the songs in Bob Dylan's amazing catalogue would take too long and would be like reading from the encyclopaedia."
TAGS: Music Bob DylanPulitzer Prize