Bacca the police dog was slashed with a ten-inch knife after he refused to let a suspect get away.
The brave animal held on to the man even after his handler PC Mike Davey had been knifed during the arrest.
They had been called to the location in Bromyard, Herefordshire, in the early hours of June 6, 2018, after receiving reports of a man acting in a violent and unpredictable manner.
The assailant, who also attempted to harm himself, was eventually apprehended after Bacca wrestled him to the ground.
Bacca needed emergency veterinary treatment for his injuries but survived and is now retired.
The West Mercia Police dog was honoured with the PDSA’s Gold Medal – which the charity regards as the animal equivalent of the George Cross – in a ceremony at Birmingham Repertory Theatre today.
Retired PC Davey, who also required medical attention to a deep wound on his hand, said: ‘Seeing Bacca recognised with such a prestigious award is truly fantastic.
‘A year on from the incident and I am still in awe of his actions that night. He was attacked, repeatedly, and seriously injured, yet he continued to do his job.
‘To me it highlights what a truly remarkable police dog he was throughout his career.
‘He was there when I needed him – as he was for the eight years we worked together, and still is now in retirement – and I have no doubt that he saved my life that night.’
PDSA director of veterinary services Richard Hooker praised new laws protecting service animals.
He added: ‘We are also thrilled that the Animal Welfare (Service Animals) Act, widely known as Finns Law, after a fellow PDSA Gold Medal recipient, recently came into force.
‘This gives greater protection to service animals like Bacca, who are deliberately attacked or injured in the line of duty.’
A man charged in connection with the incident later died before he was due to stand trial.