Blue Smoke was an instant hit, topping the charts for six weeks in 1949.
Now, 70 years after its release, song writer Ruru Karaitana and singer Pixie Williams will be inducted into New Zealand's Music Hall of Fame, and 100-year-old guitarist Jim Carter will receive the distinction at The Silver Scrolls Awards in October.
Mr Karaitana was a homesick 17-year-old during World War II when he composed the song as he was on board a troop ship.
Mr Karaitana’s son, Ruma, says the song was initiated when blue smoke was coming out of a smoke stack.
"The home connection was the smoke that seemed to be heading for home," he explained,
The belated honour has brought an immense sense of pride for Ms Williams' family, daughter Amelia Costello told 1 NEWS.
"When I got the phone call it was an incredible moment - lots of emotion and tears," she said.
"And wow, it's about time. Just so proud of Mum, Ruru and Jim."
Mr Carter is the last surviving member of the trio and was jamming Blue Smoke in his living room with Neil Finn only a few years ago.