The RUC has been collectively awarded the George Cross, Britain's highest civilian award for gallantry, which has precedence over all other British medals with the exception of the Victoria Cross.
Police representative bodies and unionist politicians expressed delight at the award, although there was some anti-Belfast Agreement suspicion that it was designed to assist Mr David Trimble in selling the deal on devolution and decommissioning.
Sinn Fein said the award was "grossly offensive" while the SDLP deputy leader, Mr Seamus Mallon, issued a positive statement on the decoration.
The medal awarded by Queen Elizabeth was described by the RUC Chief Constable, Sir Ronnie Flanagan, as "a most immense incentive" for the force to draw upon past achievements "for the benefit of all our people". He added: "This is a momentous day in the history of the Royal Ulster Constabulary."
Amid some concern about the timing of the award, Sir Ronnie said he saw no link between the honour and the current debate on the Patten proposals and the peace process.
Downing Street also rejected any suggestions that the award was designed to placate unionists and the RUC at a time when the force was facing a radical overhaul.
Mr Mallon has campaigned for several years for dramatic changes in policing. Nonetheless he issued a generous statement on the decoration. "The announcement reflects the reality that, whatever differences that exist over the role and conduct of the RUC, many members of the RUC and their families have suffered greatly and demonstrated courage over many years," he said.
"The award of the George Cross should be seen as recognition that the concerns of those who most value the RUC have been acknowledged and appreciated. The Patten report remains, however, a road map for the future of policing and remains in totality the basis to develop a police service that attracts the allegiance of all," Mr Mallon added.
Ms Bairbre de Brun of Sinn Fein said the decoration was a political decision. "It is grossly offensive for the British state to honour those involved in a catalogue of human-rights abuses including collusion and shoot-to-kill. They are an internationally discredited force who should be disbanded, not honoured," she added.
The UUP leader, Mr David Trimble, said he was delighted at the award. "My wish is that the honour will go some way towards acknowledging the vital contribution the RUC has made to peace and stability. The rest of the world should recognise today that, had it not been for the RUC, Northern Ireland would not now have the prospect of peace and stability within its grasp," he added.
The DUP leader, the Rev Ian Paisley, said the honour was richly deserved but he had reservations about the timing of the announcement. The best award the RUC could receive was "the burial of the Patten proposals", he added.
The Northern Secretary, Mr Peter Mandelson, said he was absolutely delighted with the award. "It is right. It is deserved, and it should be an enormous source of pride for every present and past member of the RUC and their families who have shown such enormous sacrifice and courage over the last 30 years," he said.
Mr David Ford of Alliance said that while his party supported the Patten proposals "it is right to give recognition to the service and sacrifice of many police officers throughout the years of the Troubles".
Mr Gary McMichael of the Ulster Democratic Party said he hoped that the medal would not be "the equivalent of a retirement watch" for the RUC. "The most appropriate tribute to the sacrifices of the RUC would be the retention of its name and badge," he said.
The award was also welcomed by the Police Authority, the Police Federation, the British army, and groups representing RUC widows and disabled officers.
Republican Sinn Fein, the Irish Republican Socialist Party, and SAVE - a group whose relatives died as a result of RUC actions - deplored the award.
