"I am honoured. I am totally in love with all of you," Minnelli told the assembled group in the elaborately decorated grand salon.
"What I'm really really honoured about is to be a part of France, to be a part of the city and country of my dreams."
The Legion of Honour is bestowed according to different ranks. Minnelli was made the first rank of Chevalier, or knight, in 1987. Her father, director Vicente Minelli, attained the third rank of Commander.
"She's progressing," Mr Mitterrand joked to reporters.
After picking up her award, Minnelli performed at famed Paris music hall The Olympia, the venue where her 1969 appearance became a live album.
Robert Redford, Arnold Schwarzenegger and Clint Eastwood are previous recipients of the French award.
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