Dubbed ‘Flatley Way’, the street forms a section of New York City’s 42nd street in mid-town Manhattan, a prestigious area known for high-end bars and restaurants and its famous intersection with Broadway.
Mr Flatley, who will be appearing on Broadway for the next few weeks as part of his last ever series of live shows, was present at the unveiling ceremony on Tuesday.
“It’s fantastic! It’s a dream come true,” he said.
The former Riverdance star was accompanied by the colourful cast of Lord of the Dance: Dangerous Games which opened at the Lyric Theatre later that night.
“As soon as you walk out you feel the energy of the place,” he said. “I’m one of those people who live on energy. I love energy and I can feel it in the building.”
The show runs for eight weeks and is due to close on January 3, marking Mr Flatley’s official retirement from the world of dance.
It is the first time the fleet-footed Irishman has appeared on Broadway, having previously performed at New York’s Radio City Music Hall and Madison Square Garden.
He is due to appear during the encore of each evening show, dancing alongside holographic movies of his most iconic dances.
Mr Flatley first stepped into the limelight in 1994 when Riverdance was first performed as a seven-minute interval act in the Eurovision Song Contest.
A full-length show opened at the Point Theatre the following year, after which Mr Flatley created his own shows Feet of Flames, Celtic Tiger and Lord of the Dance, which premiered in 1996.
To date, it has been performed in 60 different countries, including a five-year residency in Las Vegas.
The dancer, who is now 57, has been dogged by aches and injuries for the last number of years, but has said he doesn’t regret pushing his body to the limit during his long and illustrious career.
“You know, I don’t care. The pain is nothing. This is what I love to do and I wouldn’t trade it for anything,” he said.
“My legs are in bits right now, but I’ll tell you one thing — when I’m on that Broadway stage I’ll be dancing like I’m a teenager.”
The star said his two-month Broadway swan song is the perfect way to bow out.
“It’s been my dream to do Broadway. I couldn’t think of a better way to say goodbye to my fans after all of these years.”