The "Gangs of Wasseypur" actor was presented the award by counsel general of Wales, UK, Mick Antoniw, on Sunday at an event in Cardiff.
Hollywood legend Judi Dench was also honoured with the Lifetime Achievement award at the ceremony.
Nawazuddin took to Twitter and wrote, "Congratulations #DameJudiDench on receiving the Lifetime Achievement award. Thank You Mr. @MickAntoniw1 the Counsel General of Wales, UK & 'Cardiff International Film Festival' for bestowing me with the prestigious Golden Dragon Award.
The actor has made a mark internationally with Netflix's "Sacred Games", Ritesh Batra's "Photograph" and BBC UK's "McMafia".
In Bollywood, Nawazuddin is currently awaiting the release of his next "Motichoor Chaknachoor", a wedding comedy slated to hit the theatres on November 15.