The award jury said Rushdie was chosen for "his indomitable spirit, for his affirmation of life and for enriching our world with his love of storytelling."
After surviving a brutal knife attack, the Indian-British author is at the Frankfurt Book Fair where DW met him to discuss his new work.
The celebrated British-Indian author of "Midnight's Children" and "The Satanic Verses" has been recognized with the Peace Prize of the German Book Trade.
More than 30 years after a fatwa was issued against Salman Rushdie, the author was brutally attacked in the US. But he completed his much-anticipated new novel, "Victory City," which is out now.