The Mask star beat competition from singer Beyonce Knowles and Katie Holmes who were ranked second and third respectively.
Spanish actress Penelope Cruz came fourth, in the list compiled by People magazine.
Jessica Biel rounded of the top five, at the fifth spot.
French actress Eva Green was named the worst dressed celebrity by the magazine.
The list of best-dressed celebrity compiled by People magazine is as follows:
- Cameron Diaz
- Beyonce Knowles
- Katie Holmes
- Penelope Cruz
- Jessica Biel
- Drew Barrymore
- Jennifer Lopez,
- Reese Witherspoon
- Gwen Stefani
- Ali Larter
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