Accompanied by the United States Marine Band, the 30-year-old singer overcame initial nerves to sing a rendition of 'My Country, 'Tis of Thee'.
She tweeted: ''What an honor to be a part of history! Obama's presence was powerful and his words unforgettable. It's a proud day for America! (sic)''
A number of celebrities were quick to congratulate Kelly on her performance, with Bette Midler tweeting: '' 'My Country Tis of Thee' never sounded better! Thank you @KellyClarkson & US Marine Band! (sic)''
Meanwhile, James Taylor delivered a touching acoustic-driven rendition of 'America the Beautiful'.
The 70-year-old member of the Rock 'n' Roll Hall of Fame has been a big advocate of President Obama's re-election.
Beyonce Knowles rounded off the inauguration with a brilliant performance of 'Star Spangled Banner'.
Later that night, Barack and his First Lady Michelle had their 'first dance' at the Commander-in-Chief's Ball, as Jennifer Hudson sang Al Green's 'Let's Stay Together'.
The couple then headed to the Inaugural Ball, where scheduled performers included Alicia Keys, Fun., members of the cast of 'Glee', Black Violin, Brad Paisley, Far East Movement, Katy Perry, John Legend, Stevie Wonder, Usher, Smokey Robinson, Soundgarden and Maná.
Barack and Michelle again danced as Jennifer repeated her performance.