Helmsman Derek Pusey steered the boat into a narrow gully within rocks to rescue the two men, who were in danger of being swept out to sea.
Clive Williams swam out to reach the men in their 60s, gave them lifejackets and waited with them during a very difficult rescue.
Both men from Cardigan received honours from the Shipwrecked Mariners' Society.
They had been sent to rescue two men, stranded high up on a ledge in steep rocks at Tresaith in September 2013.
Mr Williams was frequently pushed under water by the breaking waves as he tried to reach them and was knocked from the rocks several times.
He stayed with the cold and distressed men until they were taken ashore to Aberporth.
At one stage during the rescue, a powerful wave broke over the reef pushing the lifeboat towards the cliffs with significant force.
Mr Pusey managed to regain control and rapidly return the second casualty to safety.
He received The Lady Swaythling Trophy, awarded annually for an outstanding feat of seamanship, while Mr Williams got an individual commendation.
The helmsman of a second lifeboat Leonard Walters, who steered as close to the cliffs as possible in rough seas, has already received a framed letter of thanks from the RNLI chairman.
The society's chief executive Commodore Malcolm Williams said: "This rescue required an exceptional act of courage and ability.
"Despite technological advances we still rely on the bravery of rescue crews and individuals to help those in danger around our coast. "
Two lifeboat crew members have been given bravery awards for rescuing two men cut off by the tide off Ceredigion.