Clinton will receive the medal in a Sept. 10 ceremony at Philadelphia's National Constitution Center.
Liberty Medal sponsors praised Clinton's "lifelong career in public service and her ongoing advocacy efforts on behalf of women and girls around the globe."
Former Florida Gov. Jeb Bush, chairman of the National Constitution Center, says the secretary of state and former first lady "has dedicated her life to serving and engaging people across the world in democracy."
The Liberty Medal was first given in 1989. It recognizes individuals who have furthered the ideals of freedom, democracy and equality. Previous recipients include rock singer and human rights activist Bono and former South African President Nelson Mandela. Six winners have subsequently received the Nobel Peace Prize.