The award, financed by Elaine C Smith, will be given to a final-year drama student at the Royal Conservatoire of Scotland.
This includes students from the BA Acting, BA Performance, and BA Musical Theatre courses.
Elaine, who has entertained audiences for four decades, said: “Making people laugh is such a joyous thing.
“In my time, comedy in many ways was seen as lesser. Everyone wanted to do the serious roles.
She hopes the prize will encourage women, particularly those from working-class backgrounds like her own, to pursue comedy.
She said: “In a time like this, when the creative arts are under attack, it’s a wee bit of money to help them along the way, to buy the books they need or to afford to go and see a few shows.
“Even though I had a grant, I was working in clubs and bars and waitressing all the way through my studies and living week to week.”
The actress, known for her roles in sitcoms such as City Lights, Rab C Nesbitt, and Two Doors Down, began her career at the Royal Scottish Academy of Music and Drama (now the Royal Conservatoire of Scotland).
Her love for the arts was ignited at school, and she credits influences like Doris Day and Lucille Ball for inspiring her to pursue a career in comedy.
She also acknowledges the impact of comedian Billy Connolly, particularly his use of their shared Scottish accent and culture.
Elaine, who also worked as a drama teacher in Edinburgh, is passionate about making the arts accessible to all.
