Sir Paul McCartney, founder of Liverpool Institute of Performing Arts, returned to Liverpool to hand out the degrees at the Philharmonic Hall.
Sir Paul said: "I love this day, it's a very special day in my year for many reasons.
"I know some of the students personally from working with them."
Hundreds of Lipa students gathered with their families and friends to get their degree certificate and the famous Lipa badge.
Mark Featherstone-Witty, chief executive of the institute, said: "It is wonderful to see so many graduates here today with their families and friends."
Hayley Doyle, aged 22, from Litherland, graduating with an acting degree said: "I'm really proud to be graduating from Lipa - and getting a degree handed to me by Paul McCartney."
Music graduate Ranjit Burman, 34, from Bootle, said Lipa was great for the city.
He added: "Paul McCartney is the reason why I went into music. Lipa is setting a precedent, putting out real quality talent into the world".
Sir Paul added: "From those early days, when I was about 11 and this whole speech day process, I can't believe what's happened to me in my life.
"I feel like I was originally just trying to get out of doing a job, but it turns into something else, something you love, a passion or phenomenon when you meet mates like I met in the Beatles.