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Mark Cavendish was given the honour for “services to British cycling” at a ceremony at Buckingham Palace.
Cavendish, 26, was included in the Queen’s Birthday Honours list in June along with three other people from the Isle of Man.
The MBE comes in a year in which the cycling star also claimed victory in the world road race championships.
He won the coveted green jersey in the Tour de France.
He has now won 20 stages of the race in his career.
The cyclist had a disappointing Olympic Games in Beijing in 2008, failing to win a medal, but could claim the first gold medal of London 2012 in the men’s road race on the opening Saturday of the Games.
Outside the palace, he joked: “All the guys from Beijing got them in 2008 so I’ve waited quite a bit longer – it was really nice.”
Speaking about his conversation with the Queen, he added: “She said I must have put in a lot of hard work to get where I am.
“We were talking about the Olympics and (my event) finishing on the Mall outside Buckingham Palace next year – I told her to give me a cheer when we come past.”
Other Manx people included in the 2011 Queen’s birthday honours were Enduro champion David Knight, government official Della Fletcher and charity worker Carolyn Shipstone.
Cavendish was joined at the Palace by his partner Peta Todd who is expecting their first child.
