American Film Institute chairman Howard Stringer calls Fonda, "American film royalty -- a bright light first introduced to the world as the daughter of Henry Fonda, the world watched as she found her own voice and forged her own path as an actor and a cultural icon. Today she stands tall among the giants of American film."
A two-time Oscar winner (for her work in Klute and Coming Home), she has appeared in more than 40 movies in her half-century career.
She becomes the second member of her family to win the AFI Life Achievement Award -- her father was honored in 1978. They're not the only family with multiple recipients -- Kirk and Michael Douglas were the winners in, respectively, 1992 and 2009.
The June 5th ceremony will taped for broadcast on the TNT and TCM cable channels.