Between them they have starred in some of Hollywood's most memorable films and created some of the most enduring female roles - and they drew large crowds of onlookers to the palace.
Dame Julie said: "This is the greatest honour of my life. I didn't think I was eligible as I've lived in America for such a long time but I've always felt I've taken my Britishness with me."
Both were born in Britain in the 1930s but have spent most of their working lives in the United States. The Sound of Music star Dame Julie Andrews, 64, was the first to receive her insignia, for services to acting and entertainment, at a ceremony in the ballroom at Buckingham Palace.
Next, in alphabetical order, came Dame Elizabeth, 68, who received her Dame Commander's brooch in honour of her services to acting and charity - recognising her fundraising for Aids research. Rarely have two such big stars been honoured at the same investiture and - as is now common practice - the investiture ceremony was recorded for television.
An exhibition of portraits of Dame Elizabeth opens at London's National Portrait Gallery on Thursday and she will be the guest of honour at a charity spectacular at the Royal Albert Hall, London, on 26 May to raise money for Aids research. Next Wednesday, the British Film Institute is honouring her with a BFI Fellowship at a tribute dinner at the Dorchester Hotel in London. Another highlight of a planned series of events in her honour is the National Film Theatre's programme of a dozen classic Liz Taylor movies, including the epic Cleopatra in which she starred with Richard Burton. Dame Julie on the set of The Sound of Music
Dame Julie, who has been married to US movie director Blake Edwards for 30 years, shot to fame in the 1960s with starring roles in The Sound of Music and Mary Poppins. In December last year, she launched a lawsuit against a New York hospital for damage to her singing voice during vocal surgery in 1997. Among her recent projects has been a British film version of the Noel Coward comedy Relative Values.