The British heir to the throne presented the award, which is only given to foreign nationals in case of exceptional service to Britain, at a private ceremony in his official London residence, Clarence House.
"I was hugely, hugely delighted that Prince Charles has awarded me the CBE, which the Queen has so generously given to me for my services to theatre," the 51-year-old "American Beauty" star said after the ceremony.
"I am so honoured to live and work in Britain on behalf of the Old Vic Theatre."
Spacey has attracted fellow Hollywood heavyweights to tread the boards during his seven-year tenure at the historic theatre and frequently appears in plays himself.
The theatre, which is based in south London, opened in 1818 and has showcased performances by legendary actors Laurence Olivier, Judi Dench and Peter O'Toole.
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