The singer was awarded the honour by Prince Charles during a service at Buckingham Palace.
Ed, who was dressed in a smart suit, smiled as the Prince of Wales gave him the MBE, and spoke of his late grandfather, Bill Sheeran, after the ceremony.
Revealing that it was the four year anniversary of his grandfather’s passing, Ed said: “Do you know what I love, my grandfather was a massive royalist, he had all the commemorative plates and stuff, and he died on this day four years ago.
“So it’s actually quite a nice full circle thing, I guess he’d be pretty proud.”
Ed was also asked whether he would perform at the upcoming royal wedding, with Prince Harry due to marry his actress girlfriend Meghan Markle in May next year.
The star confessed that he hasn’t yet been asked but he would definitely do it if the opportunity came along.
Speaking previously about his MBE honour, Ed wrote on Instagram: “Chuffed to be awarded an MBE for services to charity and music, thanks for all your lovely messages”.
Honours are presented to people who have either made life better for others or are outstanding at what they do.
An honours committee decide who gets which honour, with the decision then going to the Prime Minister to be endorsed, before finally going to the Queen, who awards the honour.
Around 25 investitures take place a year, with most being hosted by either the Queen or the Prince of Wales.