The Single Ladies hitmaker was given the coveted title by US People magazine.
And she says since giving birth to her and husband Jay-Z's first baby Blue Ivy, she feels even better about herself.
'I feel more beautiful than I've ever felt because I've given birth. I have never felt so connected, never felt like I had such a purpose on this earth,' she said.
Beyonce, who covers the latest issue of the magazine, gave birth to Blue Ivy on January 7 this year.
Gushing about motherhood, she continued: 'The best thing about having a daughter is having a true legacy.
'The word "love" means something completely different now.'
Beyonce looks stunning on the cover of the magazine, wearing a strapless white dress teamed with a chunky turquoise statement necklace.
She has long been known as a style icon but the new mum admits that her new role has lead to her changing her style slightly.
'I never thought there would be a day when I wouldn't wear heels,' she exclaimed.
'Now that I have a child, I walk around holding her all day, I'm buying loafers and oxfords. I love the, because they're comfortable, and shorter heels too.'
The 30-year-old came top of a poll of the ten most beautiful celebrities, nominated by the magazine.
Coming in second place was Modern Family star Sofia Vergara, followed by Hollywood actress Charlize Theron.
Other stars on the list include Lily Collins, Christina Hendricks, Michelle Williams and Miranda Lambert.
Kate Middleton also made the list, coming in tenth place.
People magazine's top ten 'most beautiful women in the world':
1. Beyonce
2. Sofia Vergara
3. Charlize Theron
4. Lily Collins
5. Madeleine Stowe
6. Christina Hendricks
7. Michelle Williams.
8. Paula Patton
9. Miranda Lambert.
10. Duchess of Cambridge
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