The British Racing Drivers' Club (BRDC) that owns Silverstone announced on Saturday that the international pit straight would now be known as the Hamilton Straight.
It is the only part of the circuit to ever have been named after a driver, recognising Hamilton's achievements that statistically make him the greatest British racer in F1 history.
Hamilton has won the British Grand Prix a record seven occasions, six of which have come on the current track layout that includes the straight that now bears his name.
Hamilton was informed of the news by BRDC president David Coulthard on Saturday ahead of the F1 season finale in Abu Dhabi.
"I was delighted, in my capacity as President of the BRDC, to share this news with Lewis today," said Coulthard.
"It is the first time in Silverstone's history that a part of the circuit has been named after any individual.
"Lewis has become a huge part of this history, and the directors of the Club and I felt there was no better way to mark this than to re-name the iconic pits straight in recognition of his record-breaking achievements."
Hamilton took pole position on his first F1 appearance at Silverstone in 2007 before winning the race one year later with what is widely regarded to be one of his greatest drives.
Hamilton then won the race for four consecutive years between 2014 and 2017, and has won the last two editions of the race.
2020 saw Silverstone host two grands prix in a single year for the first time, staging the 70th Anniversary Grand Prix as part of the push to bolster the F1 calendar.
Silverstone staged the very first F1 grand prix in 1950, and helped lead its celebrations to mark the series' platinum jubilee.
Hamilton won the British Grand Prix after a dramatic tyre failure on the final lap, leaving him to cross the line on three wheels, but only finished second in the 70th Anniversary race as Max Verstappen took the win for Red Bull.