The Farrier has won the prestigious accolade in the 26th annual AA Hotel and Hospitality Services B&B Awards at a virtual ceremony on Tuesday July 5.
Located at Cayton, the establishment is owned and run by mother and daughter duo Suzie and Dani Bushby, who saved the then-Blacksmiths Arms from being demolished for new homes after it underwent a £2m refurbishment in 2019.
The inn has since gained a reputation as one of the best places to eat in the region.
Suzie Bushby, co-owner, said the award win was "beyond exciting" due to the prestige and reputation of the AA brand.
The Farrier received a visit from the AA "a little while ago" when the inn was first awarded a Rosette for their food, and they were nominated shortly after.
Suzie said: "The honour is made even greater as some of their award categories are split into regional winners, however, The Farrier won outright for the whole of the UK, which for us is just staggering."
The award win is just the latest accolade for The Farrier after claiming the crown of Channel 4's Four in a Bed in March 2021 and being named the 'Best Licensed Premises in North Yorkshire' at the England Business Awards, just three months after opening in March 2019.
Dani Bushby, co-owner, said: "I am honoured and proud to accept this prestigious award from the AA.
"In 2015 my family and I began a restoration project that would ultimately take three years, but give a new heart to the old soul that was the rather tired, closed down, public house in our village.
"As we approach our fourth year of trading, I can honestly say that back then we would never have dared to dream that we were capable of what we have achieved and receiving this award has really confirmed for us that everyone's hard work and determination to go above and beyond, in every aspect of our business, is truly paying off.
"This is a huge achievement for the whole team at The Farrier and we are all thrilled and excited to be the very grateful recipient of the AA's Inn of the Year Award 2022."