At the age of just 17â€‹â€‹, Malala is the youngest recipient of the award.
The teenager was shot in the head in October 2012 Taliban militants campaigning education of girls. He now lives in Birmingham in the UK.
Malala said he was “honored” to receive the award, saying that he felt “strong and courageous.”
He showed he learned the news, he called her chemistry class after school in Birmingham.
“I am very happy to share this award to a person in India,” he said at a press conference before joking that he could not tell Mr Satyarthi name.
The Nobel committee praised the couple’s “fight against the oppression of children and young people.”
Mr Satyarthi has maintained the tradition of Mahatma Gandhi and started various forms of peaceful protests, “particularly in the exploitation of children in severe financial gain,” the committee said, the Nobel Institute in Oslo.
The 60 year old founded Bachpan Bachao Andol, or Save the Childhood Movement, which campaigns for children’s rights and an end to human trafficking.
In response to the news, Mr Satyarthi told the BBC: “It is a great honor for all Indians, it is an honor for all those kids who have to live in slavery, despite the advancement of technology, the market and the economy.
“I dedicate this award to all children of the world.”
Malala Yousafzai and Kailash Satyarthi win Nobel Peace Prize
Thorbjorn Jagland, chairman of the Norwegian Nobel Committee, paid tribute to the results of Malala.
“Despite the fact that young people, Malala Yousafzai, has been fighting for several years to the right of girls to education, for example, and shows that children and young people can contribute to their own situation,” he said.
“This girl has the most dangerous circumstances. Via the heroic struggle he became a leading spokesman for the girls’ education.”
The committee said that it is important that the Muslim and Hindu, Pakistani and Indian, joined in our common struggle against the so-called education and extremism.