Nelson was this year's honoree at the Recording Academy's Producers and Engineers Wing 12th Annual Celebration at the Village Studios in Santa Monica, California. The outlaw country innovator was honored for his "artistic achievements and creative genius."
"He has this unique ability to unite and really bring people together," Musgraves said during her speech at the event. "Underdogs, outliers, republicans, rappers, presidents—everyone loves Willie."
After the event, Musgraves shared photos from backstage with Nelson, adding, "..it's been a 'willie' nice week so far. Heart full from last night's laughs and honoring Mr. William Hugh Nelson."
The night also featured performances by Dave Matthews, who was joined by Nelson's sons Lukas Nelson and Micah Nelson.
The honor joins the eight Grammy Awards Nelson, 85, has brought home during his seven-decade career. Nelson also received the Grammy Legend Award and the Lifetime Achievement Award, and is still performing. In fact, he is up for two awards this year - Best Traditional Pop Vocal Album for My Way and Best American Roots Performance for "Last Man Standing."
Musgraves, 30, already has two Grammys herself. In 2013, she won Best Country Song for "Merry Go 'Round" and Best Country Album for Same Trailer Different Park. This year, she was nominated for Album of the Year and Best Country Album of the Year for Golden Hour. Before the show, Musgraves won Best Country Solo Performance for "Butterflies" and Best Country Song for "Space Cowboys."
The singer was picked to join Katy Perry, Maren Morris and Little Big Town to honor Dolly Parton as the 2019 MusiCares Person of the Year.
Golden Hour already earned Musgraves a major award, Album of the Year at the County Music Association Awards. The album debuted at No. 4 on the Billboard Album Chart and has sold about 150,000 units, even though none of its singles have been successful on country radio.
"I'm overjoyed that people in country music seem to appreciate the songs, and then also people who don't know anything about country music," Musgraves said of the album's appeal in an interview with The Tennessean. "There's a little something for everyone. I think that it's a little bit of a crazy time that we live in right now, and I was hoping that the album would be a beautiful escape for people."
Photo credit: IMichael Kovac/Getty Images for The Recording Academy