Obama, who was in India on a three-day state visit, recollected that when he had first visited India in 2010, he had experienced some 'bhangra'.
Giving his speech a Bollywood twist, he delivered Shah Rukh's dialogue from the 1995 movie "Dilwale Dulhania Le Jayenge".
"Senorita, bade bade deshon ... You know what I mean," he said.
Even though he cut the popular dialogue short, Obama managed to draw a huge applause and cheer from the audience.
For SRK, one of Bollywood's top-rated filmstars and a global icon, it was a moment to feel proud.
"Proud 2 b part of the gender & religion equality speech of Pres. Obama. Sad he couldn't do the Bhangra... next time Chaiyya Chaiyya for sure," Shah Rukh tweeted.
Composed by Oscar-winning music maestro A.R. Rahman, the popular dance number is part of the "Dil Se" sound-track.