Oscar winning actress Lupita Nyong'o has been named People magazine's `Most Beautiful` woman.

The 31-year-old, who won an Oscar for her role as the slave Patsey in Steve McQueen's "12 Years a Slave", recently landed a contract with Lancome Paris, reports showbizspy.com.

`It was exciting and just a major, major compliment. I was happy for all the girls who would see me on (it) and feel a little more seen,` she said.

Nyong'o first equated beauty with what she saw on television.

`Light skin and long, flowing, straight hair,` she says. `Subconsciously you start to appreciate those things more than what you possess.`

Nyong'o dyed her hair every colour - except blonde - when she was a teen.

`It was very strange and very cold!` she says, laughing. `It was scary but I like to dare myself.`

Now she says the best compliments are `when I have been called beautiful with not one drop of makeup on,` she adds.

`And also before I comb my hair or put on a pretty dress. Happiness is the most important thing.`