The Real Madrid forward travelled to the Portuguese island from Morocco after helping the La Liga side claim the Club World Cup, their fourth trophy of 2014, with a 2-0 win over Argentine side San Lorenzo on Saturday evening.
“This is a very special moment, to have a statue of me,” said Ronaldo at the ceremony, where he was joined by members of his family and thousands of fans.
“Ronaldo has never forgotten his origins,” said his mother, Dolores Aveiro.
The 3.4-metre statue forms part of Ronaldo’s personal museum on the island, housing his collection of trophies, including his two Ballon d’Or titles.
Ronaldo could add a third next year as he is favourite to win the FIFA award again.
Ronaldo, who won the Ballon d’Or for the first time in 2008, made the shortlist after scoring a record 17 goals in a Champions League campaign as Real Madrid went on to claim their 10th European Cup last season.