Gwyneth Paltrow has been named the World's Best Dressed Woman.

The Oscar-winning actress, who is known for her classic and sophisticated style, was given the prestigious accolade by People magazine, with the publication stating it was impressed with her simple fashion choices.

Gwyneth's stylist, Elizabeth Saltzman, said the 39-year-old mother-of-two was not a slave to trends, adding: "She doesn't do fringe. She has a uniform. It's simple, not overdone."

Britain's Duchess of Cambridge was named the woman with the Best Classic Style, while Emma Stone was honored with having the Best Red Carpet Style.

Rihanna was praised for taking the most risks in her fashion choices, while Jessica Alba took home the prize for Best Jeans.

Jennifer Lawrence was also recognized for Best Dress Under 25, while Reese Witherspoon—who is expecting her third child—took the title of Best Pregnancy.

It wasn't just the Best Dressed of 2012 that made the poll as the magazine also looked at the big fashion faux pas of the last 12 months.

Black Eyed Peas singer Fergie was slated for an orange lace dress worn with prominent black underwear, while Sarah Jessica Parker received criticism for a floral floor-length dress she wore.

The list was compiled after soliciting input from the celebrity magazine's 42 million readers, its editors and fashion bloggers.