Speaking at the opening ceremony, Chechnya's pro-Moscow leader Ramzan Kadyrov said he was sure that 99% of the Chechen population trusted Putin and the Russian leadership.
"As a sign of the Chechen people's gratitude, the Victory Avenue will now be renamed after the national leader - Vladimir Putin. This is our tribute to the person who has done so much for our country and for all of us," Kadyrov said.
Sunday's renaming of the avenue came to coincide with a local holiday marking 420 years of friendship between the Chechen and Russian peoples.
Putin, who was prime minister under the late former president, Boris Yeltsin, ordered federal troops into the Chechen Republic in 1999, following a large-scale attack by Chechen militants in the neighboring Russian republic of Daghestan, and a series of bombing attacks in Moscow and other Russian cities allegedly launched from Chechnya.
Putin's tough handling of the conflict in Chechnya earned him popularity throughout Russia. He was elected president in March 2000 after Yeltsin had stepped down in late 1999.
Although large-scale military operations are over in Chechnya, the republic and neighboring regions are still plagued by raids on federal troops and pro-Kremlin police and authorities.