In recent months, Katie has transformed herself from her tomboy Dawson's Creek character Joey Potter into a sleek fashionista who is never uncomfortable on the red carpet.
One OK writer said: "Katie Holmes has matured from teen queen into a pillar of fashion. This year her style was developed and fine-tuned so much so that she came to be viewed in the same realm as legends like Jackie O, helping her cruise beyond the shadow of her husband and into an iconic realm of her own."
Katie was closely followed in second place by Grey's Anatomy star Katherine Heigl thanks to her "natural and timeless beauty."
Gwen Stefani - who is renowned for her unique sense of style and has found success with her own fashion line L.A.M.B - came third, while 33-year-old supermodel Kate Moss took fourth spot.
'Umbrella' singer Rihanna rounded off the top five.
America's OK! magazine's Most Stylish Stars of 2007 full list:
- Katie Holmes
- Katherine Heigl
- Gwen Stefani
- Kate Moss
- Rihanna
- The Olsen twins
- Jennifer Lopez
- Rachel Bilson
- Diane Kruger
- Dita Von Teese
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