Blur saw off competition from fellow reformed rockers the Stone Roses to be named the best live act at the Q Awards.
The Britpop veterans, who headlined the 2012 Games closing concert on August 12, released their debut album 21 years ago and racked up 13 top 10 hits.
They picked up the award at a ceremony in central London on Monday, but lost out to Muse in the race to be named the best act in the world.
Muse frontman Matt Bellamy said the band's success was something he had always dreamt of.
He said: "The thing I'm most happy about is that the band has been through so much together since we started in high school at about 15 years old. We've been through all the craziness that you can imagine.
"The fact that we've kept together and our priority is our friendship together above everything else, that's what I'm most proud of."
Emeli Sande, who starred in the Olympics closing ceremony, was named best solo artist, while Smiths guitarist Johnny Marr was named a Q hero.
Fresh from a performance on last night's X Factor results show, Emeli - who also picked up the critics' choice prize at this year's Brit Awards - said she was still pinching herself at how well the past 12 months have gone.
"This year's been more than I could ever have imagined and I'm very happy," she said. "This award is just really exciting. Q has shown me such great support since the beginning so it's really great to be here a year later."
The awards, hosted by comic Al Murray, also saw wins for acts including Plan B, Pulp and soul veteran Bobby Womack.