"I feel really honoured about it, very humble, and I kind of feel like everyone that helped me on the day needs an award as well.
"It just makes it feel so wonderful that the community is here."
Ms Knight's husband Peter Thomas said they were contacted about the award late last year through the Northcote Business Association.
The award was presented by Safer North Community Trust spokesman Wayne Williams.
"Lucy Knight took it on her own to interfere and stop what was wrong and make it right," he said.
"There aren't many brave people in our communities that we get to hear about and we don't champion them enough."
Accepting her award, Ms Knight said the support she had received from the community since the attack had been mind-blowing.
"I'm so honoured to receive this and so grateful for all the support I've had from everyone.
"Everyone that was here when the incident happened and helped me went above and beyond the call of duty, it was wonderful."
Ms Knight's attacker, 17-year-old Hendrix Hauwai, was sentenced to four years and nine months imprisonment earlier this month.
A Givealittle page set up by Ms Knight's friends raised nearly $270,000 for family.