Dame Kelly Holmes described Laura Muir as "your future Olympic champion" as she presented the 25-year-old with Scotland's athlete of the year award.
Olympic gold medallist Holmes has lost British records to Muir, who was this year crowned European 1,500m champion.
"Laura Muir has had a cracking year," Holmes told Scottish Athletics' annual awards dinner in Glasgow.
She suggested that Muir's number one world ranking at 1,500m "says it all about Laura's 2018".
"The World Indoors in Birmingham in early March set her up for the rest of the year," she said.
"To win two medals in three days with a bronze in the 3,000m followed by a silver in the 1,500m was a great achievement - and especially when snow and ice made travelling so difficult in Britain that week.
"I think that boosted her confidence even more for the European Championships and she dominated that 1,500m final to win well in Berlin.
"To then go and win the Diamond League final in Brussels really was the icing on the cake."
It is the third time Muir has won Scotland's annual award following successes in 2015 and 2016 and her coach, Andy Young, was also named performance coach of the year.
Muir was particularly "thrilled" to win this title again as "every year it seems the opposition is even stronger because so many Scots are performing on the world stage".
"It was such an exciting year for me," the Dundee Hawkhill Harrier said. "There were a few highlights, but if you push me, I would pick out Berlin and the European 1500m gold.
"It was my first international medal outdoors and I really wanted to win that one."
Fifer Derek Rae was named Para athlete of the year after winning gold in his T45/46 category art the IPC World Cup at the London Marathon in April and continuing to set personal bests at various distances.
Commonwealth Games medallists Lee McConnell and Lachie Stewart were among the names from the past inducted into the hall of fame.