In 1992, Khan was given Pakistan's civil award, the Hilal-i-Imtiaz. He had received the President’s Pride of Performance Award in 1983. Khan is featured in the University of Oxford's Hall of Fame and has been an honorary fellow of Oxford's Keble College. On 7 December 2005, Khan was appointed the fifth Chancellor of the University of Bradford, where he is also a patron of the Born in Bradford research project.

In 1976 as well as 1980, Khan was awarded The Cricket Society Wetherall Award for being the leading all-rounder in English first-class cricket. He was also named Wisden Cricketer of the Year in 1983, Sussex Cricket Society Player of the Year in 1985, and the Indian Cricket Cricketer of the Year in 1990. Khan is currently placed at Number 8 on the all-time list of the ESPN Legends of Cricket. On 5 July 2008, he was one of several veteran Asian cricketers presented special silver jubilee awards at the inaugural Asian cricket Council (ACC) award ceremony in Karachi.

On 8 July 2004, Khan was awarded the Lifetime Achievement Award at the 2004 Asian Jewel Awards in London, for "acting as a figurehead for many international charities and working passionately and extensively in fund-raising activities. On 13 December 2007, Khan received the Humanitarian Award at the Asian Sports Awards in Kuala Lumpur for his efforts in setting up the first cancer hospital in Pakistan. In 2009, at International Cricket Council's centennial year celebration, Khan was one of fifty-five cricketers inducted into the ICC Hall of Fame