The Beacon Hotel, in Bilston Street, has been named the Campaign for Real Ale's Dudley and South Staffordshire Branch Pub of the Year.
It follows the group's regular scrutiny of pubs within the area which looks at a range of factors including atmosphere, service, customer welcome and beer quality.
Staff at the pub said they had been made aware of their success - and had now been presented with the award.
It is the seventh time the Beacon Hotel has received the accolade having been joint winner with the Cat Inn, at Enville, last year.
The pub will now go on to the national competition.
Last time it progressed to win the West Midlands County and Regional rounds of the event.
But it has never won the national competition which bosses at the pub say remains their goal.
General manager Alex Marchant said staff were delighted to have received the accolade for a seventh time.
"It is a wonderful achievement and we are extremely proud to have been named pub branch of the year again," she said.
"All of the staff work extremely hard to maintain the pub's high standards and this shows we have been successful.
"A range of criteria has to be met to receive the award including the quality of the beer and the level of service.
"Even the pub's decor is taken into account.
"We were absolutely delighted when told we had got the award again."
Ms Marchant, who has been general manager at the pub for around five years, said they were now looking forward to taking part in the national competition.
She said: "We have made the finals in the past but have never won the national competition and it is something we have always wanted to achieve.
"It would be great if we could gain the accolade this time.
"Whatever happens we will work to ensure we deliver the best beer and the best service possible."