Rupert Denby, 58, lost his wedding ring while helping put up the village Christmas tree in Sherburn in Elmet in early December.
Villagers joined the search and Rupert even borrowed a metal detector to sweep the area near the Christmas tree.
Rupert and his wife Terri - who are set to celebrate their 30th wedding anniversary on August 3 - had lost all hope of getting it back.
Bertie Lawson, five, was using his metal detector outside the Old Girls School Community Centre and tearoom on Tuesday April 13 when he found the ring.
He gave it to his dad Kirk, 40, who took it to Sherburn Police Station.
Police returned the ring to Mr Denby, who rewarded Bertie with a hamper full of chocolates along with a note thanking him for being 'honest and kind.'
Kirk said Bertie had asked for a metal detector for Christmas after seeing detectorists in and around the village.
Kirk said he asked permission from the landowner before allowing Bertie to use his metal detector.
"Everyone wants to find a bit of something gold," said Kirk. "He was chuffed to bits to find a big sparkly gold ring."
Rupert, who works at British Gypsum in Sherburn, said: "The little lad was over the moon to have found it for me.
"He will go far in life. He is honest and is a credit to his parents."
Grandma of three Terri Denby, 52, said: "He lost it while he was helping put the Christmas tree up at the beginning of December.
"He realised he had lost it when he got home. It was quite upsetting.
"A lot of people had been out looking for it. We had written it off so, when we got the phone call to say it had been found it was absolutely amazing.
"I couldn't believe this little lad had found it.
"God bless him, at five, to hand it in and get it back to its owner. It shows he is kind with a big heart."