The 76-year-old was awarded the prize in recognition of her contribution to cinema and television.
"For someone who was told in 1959 that they would never make it in the film industry I feel incredibly surprised and privileged to be receiving this fellowship," Dame Judi said.
The award is the highest accolade the BFI can bestow.
The star was presented with the honour at the annual chairman's dinner in London on Wednesday night.
BFI chairman Greg Dyke said: "Dame Judi Dench is one of the world's finest, most respected actors.
"Her contribution to British film and television has been outstanding for over 50 years, she is a national treasure with an international reputation.'
Created in 1983, the fellowship is given to those who have helped shape film and TV culture in the UK.
Previous recipients include Sir Ridley Scott, Dirk Bogarde, Lord Attenborough, Sir Alec Guinness, Dame Maggie Smith, and Mike Leigh.
The fellowship joins Dame Judi's other accolades including an Academy Award for her role in Shakespeare in Love, 11 Baftas, three Laurence Olivier Awards and a Golden Globe.
Earlier this week the actress also received the Freedom of the City of London for her services to acting.
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