1998–2017: NPG Records, Funk This, and industry honors
In 1998, Khan signed a contract with Prince's NPG Records label and issued Come 2 My House, followed by the single "Don't Talk 2 Strangers", a cover of a 1996 Prince song. She later went on a tour with Prince as a co-headlining act. In 2000, Khan departed NPG and she released her autobiography Chaka! Through The Fire in 2003. The following year she released her first jazz covers album in twenty-two years with 2004's ClassiKhan. She also covered "Little Wing" with Kenny Olson on the album Power of Soul: A Tribute to Jimi Hendrix.
In 2006, Khan was a featured vocalist on Arif Mardin's All My Friends Are Here album of his life's work, also appearing in the companion documentary The Greatest Ears In Town. She performed a jazz vocal for "So Blue", composed by Mardin in the '60s with lyrics written for the project by Roxanne Seeman.
After signing with Burgundy Records, Khan released what many critics called a "comeback album" with Funk This, produced by Jimmy Jam and Terry Lewis & Big Jim Wright. The album featured the hit, "Angel", and the Mary J. Blige duet, "Disrespectful". The latter track went to No. 1 on the U.S. dance singles chart, winning the singers a Grammy Award, while Funk This also won a Grammy for Best R&B Album. The album was also notable for Khan's covers of Dee Dee Warwick's "Foolish Fool" and Prince's "Sign o' the Times". In 2008, Khan participated in the Broadway adaptation of The Color Purple playing Ms. Sofia to Fantasia Barrino's Celie.
In 2002, Chaka Khan provided backing vocals for her sister Taka Boom's rendition of "Misti Blu," a collaboration with the British electronic music group amillionsons.
In December 2004, Khan was awarded an Honorary Doctorate of Music from Berklee College of Music during the inauguration of its president, Roger H. Brown.
In a 2008 interview Khan said that she, unlike other artists, felt very optimistic about the current changes in the recording industry, including music downloading. "I'm glad things are shifting and artists – not labels – are having more control over their art. My previous big record company (Warner Bros.) has vaults of my recordings that haven't seen the light of day that people need to hear. This includes Robert Palmer's original recording of 'Addicted to Love' – which they took my vocals off of! We are working on getting it (and other tracks) all back now." In 2009, Khan hit the road with singers Anastacia and Lulu for Here Come the Girls.
In 2009, Khan was guest singer on the song "Alive" on jazz drummer Billy Cobham's album Drum ' n voice 3. In 2010, she contributed to vocals for Beverley Knight's "Soul Survivor", collaborated with Clay Aiken on a song for the kids show Phineas and Ferb, and appeared as a featured artist on "One More Try" and a cover of her song "Through the Fire" on Japanese-American singer-songwriter Ai's eighth studio album, The Last Ai. Both Khan and Ai won the International Collaboration Special Award at the 2010 Billboard Japan Music Awards for the two songs. Khan continues to perform to packed audiences both in her native United States and overseas.
On May 19, 2011, Khan was given the 2,440th Hollywood Walk of Fame star plaque on a section of Hollywood Boulevard in Los Angeles. Her family was present when the singer accepted the honor, as was Stevie Wonder, who had written her breakout hit "Tell Me Something Good". On September 27, 2011, the Rock & Roll Hall of Fame committee announced that Khan and her former band Rufus were jointly nominated for induction to the hall. It was the collective's first nomination 13 years after they were first eligible. The group were nominated partly due to Khan's own storied reputation, including her own solo career in conjunction with her years with Rufus. Recently, Khan rerecorded her song "Super Life" under the title "Super Life: Fear Kills, Love Heals" with Eric Benet, Kelly Price, and Luke James in tribute to Trayvon Martin, a teenager who was killed on February 26, 2012. A number of celebrities also joined in the recording including Loretta Devine, Terry Crews, Eva Pigford, and reporter Kevin Frazier.
On December 6, 2012, Khan performed at a benefit for the Israeli Defense Forces (IDF). The IDF originally invited Stevie Wonder; however, after a successful lobbying campaign by the US Campaign to End the Israeli Occupation, Wonder withdrew and was replaced by Khan, who was able to raise $14 million for the IDF. This support contrasted with her earlier support for the Black Panther Party that publicly supported Palestine.
On July 27, 2013, Khan was honored 40 years after signing her first recording contract with a ceremonial renaming of Blackstone Avenue between 50th and 51st street (where her former high school, Kenwood Academy, sits) as Chaka Khan Way and on July 28 the city declared the day Chaka Khan Day. She performed at Millennium Park's Pritzker Pavilion on the 28th. In August 2014, Khan served as grand marshal at the 85th annual Bud Billiken Parade and Picnic in her hometown of Chicago.
On August 27, 2015, Khan was announced as one of the celebrities who would compete on season 21 of Dancing with the Stars. She was paired with professional dancer Keo Motsepe. Khan and Motsepe were the first couple eliminated from the competition on September 21, 2015. In July 2016, she canceled her upcoming concert performances and entered rehab.