In a humble speech, the US president acknowledged he had been a controversial recipient of the prestigious humanitarian prize "in part... because I am at the beginning, and not the end, of my labour on the world stage."
Previous Nobel laureates, who have included Nelson Mandela, Mother Teresa and The Dalai Lama, had been "far more deserving of this honour than I", he admitted.
Accompanying him to the ceremony in Oslo was wife Michelle Obama, who chose a similar ensemble to the one she wore for her husband’s inauguration back in January.
Also there to witness the historic occasion were actor Will Smith, wife Jada Pinkett Smith and their daughter Willow.
The husband and wife duo are due to host the Nobel Peace Prize concert, featuring Wyclef Jean, Donna Summer and Natasha Bedingfield, in Oslo on Friday.
Prior to accepting his award Barack and Michelle met up with members of the Norwegian royal family, including Queen Sonja, King Harald, Crown Princess Mette-Marit and Crown Prince Haakon, at the royal castle in Oslo.