Mr Speaker and John Major unveiled a bust of the former Prime Minister by Ann Curry, which will stand in the Members Lobby.
The ceremony, in the Speaker's Apartments, was attended by Margaret Thatcher and David Cameron, along with members of John Major's Government, his family and friends.
"Ann Curry has captured John brilliantly, and everyone who knows John sees it embodying all his qualities."
Hugo Swire, Chairman of the Work of Arts Committee, spoke briefly before the unveiling, explaining how his Committee was completing the display of 20th Century Prime Ministers. John Major apologised for being an absentee sitter, and professed himself delighted with the result.