Kher, whose musical notes echo originality and calmness, took to micro-blogging site Twitter to share the news and thanked the state government for the recognition.
"@achlendra: CM @yadavakhilesh honours singer @Kailashkher #YashBhartiAward function in Lucknow on Monday. Thank u," he wrote.
Nawazuddin, who has garnered appreciation from all quarters with his critical performances in "The Lunchbox", "Miss Lovely", "Kahaani" and "Gangs of Wasseypur", was also lauded for his contribution to Indian cinema.
"Today we received #YashBharti Award by UP CM @yadavakhilesh. My old friend @Nawazuddin_S also got one. Thank u all," Kher tweeted.
The "Teri deewani" hitmaker also shared photographs of the ceremony.
The Yash Bharti Award is conferred by the Uttar Pradesh government for excellence in literature, fine arts, folk music, classical music, cinema and sports.