In addition to honorary doctorates from Smith College, DePaul University and Wooster College, in 1981 she was inducted into the Theatre Hall of Fame, in 1983 into the Wisconsin Theatre Hall of Fame, and in July 1986, she received the Mayor's Liberty Medal in New York City. In 1987 she was given the John Houseman Award and the Campostella Award for distinguished service.

Since her husband's death three years ago, Hagen has taken over the chairmanship of HB Studio and the theatre of the HB Playwrights Foundation. She honors his memory by continuing to shape their school as a source of inspired teaching and practice for theatre artists.