Dire Straits split in the 1990s having sold 120 million albums
Dire Straits have been honoured with a Music Heritage Plaque from the Performing Right Society (PRS).
Mark Knopfler, his brother David and John Illsley went back to their former home in Deptford, south London, to receive the honour.
The plaque was mounted outside the block of flats where the musicians played their first gig together, 32 years ago.
Founding member Mark Knopfler recalled some of the group's early days.
"John was the only one of us with a car back then and he would pile everything in and drive to the gig and the rest of of us would catch the bus.
"They were great days and we still have great memories."
John Illsley added: "It's a real privilege to return under such positive circumstances to the place where Dire Straits were conceived and did their first gig."
Formed in 1977 in Newcastle, Dire Straits were one of the biggest bands of the '80s thanks to such hits as Sultans of Swing, Money for Nothing and Brothers in Arms.
They disbanded in the early '90s.
The band sold more than 120 million albums and won a plethora of awards, including three Brits, four Grammies and two MTV Video Music awards.