The stylish crime epic saw off competition from big budget Netflix series, The Crown, and the critically-acclaimed Line of Duty, to win best drama last night.
Knight, a former Streetly School pupil, who grew up in the town before moving to Birmingham, collected the accolade at last night's glittering ceremony at London's Royal Festival Hall.
The show had never won a BAFTA TV Award before and had just one nomination this year.
Knight said the win 'means a lot to all of the team' - but he had expressed his disappointment that its stars Cillian Murphy, Helen McCrory and Paul Anderson were not nominated.
"Soon maybe they will be here as well because I think they deserve to be," he said.
The Birmingham-based show also saw off competition from Channel 4’s End of the F***ing World to receive the honour.
Peaky Blinders has only been nominated for the award once before in 2015, but lost out to BBC One drama Happy Valley.
The show follows gangsters the Shelby family and their dealings in 1920s Birmingham.
Speaking after receiving the prize from Doctor Who stars Jodie Whittaker and Bradley Walsh, Knight said he hoped the show would return for a further three series and even a film.
Knight said: "Our ambition is to make a story of a family between the two World Wars. I've always wanted to end with the first air raid siren in Birmingham in 1939.
"We're getting approached to do all kinds of things - the ballet, the musical and the movie would be great.
"I wouldn't want to do it at the very end but maybe in between two of the series."
In addition to a variety of other locations, many of the show's scenes are filmed at Dudley's Black Country Living Museum.
The programme has run for four seasons, with a fifth confirmed for this year.