At a ceremony at Government House, McCaw was invested as a Member of the Order of New Zealand.
The Order of New Zealand is the country’s highest honour, limited to only 20 living New Zealanders.
At 35-years-old, the two-time Rugby World Cup winner is the youngest person to ever be appointed to the order.
Governor-General Sir Jerry Mateparae said he was pleased to have honoured McCaw with a medal: “You’ve conducted yourself as a leader and a man.”
McCaw retired following last year’s 2015 Rugby World Cup success in England, bowing out as the most capped international player of all time on 148 appearances.