The well-known photo by Associated Press photographer Nick Ut shows Kim Phuc - who now resides in Canada - at the age of 9 running naked on a road after being severely burned on her back by a South Vietnamese napalm attack in 1972.
Kim Phuc Phan Thi, aged nine, running down a road naked near Tr?ng Bàng after a South Vietnam Air Force napalm attack. Photo taken on June 8, 1972 by The Associated Press photographer Nick Ut.
The Dresden Peace Prize, awarded annually since 2010 in the city's famed Semperoper opera house, includes 10,000 euros (11,300 dollars), which will flow into Kim Phuc's foundation supporting schools, orphanages and medical facilities in different parts of the world.
"When I am alone, I avoid the image," Kim Phuc told dpa in reference to the photograph that catapulted her into the public eye. "But I know that it allows me to work for peace, and that is my vision."