Kher, 56, began his career with theatre after graduating from the National School of Drama and later also became the chairperson of the institute.
"Have to share this great news. I have been chosen for this year's Kalidas Samman (award) in the field of theatre," Kher posted on Twitter.
The Kalidas Samman is a prestigious award presented annually by the government of Madhya Pradesh.
The award is named after Kalidas--a renowned Classical Sanskrit writer of ancient India -- widely regarded as the greatest poet and dramatist in the Sanskrit language with his 'Meghadutam' and 'Abhigyan Shakuntalam'.