She was flown to Britain to be treated at the Queen Elizabeth Hospital in Britain's second city Birmingham and survived, and now lives in the city with her family. She has won the hearts of the nation and was also nominated for the 2013 Nobel Peace Prize.
And today Malala opened the city's new £189 million library in Centenary Square. It houses a collection of one million books and has more than 200 public access computers, theatres, an exhibition gallery and music rooms.
As part of the opening ceremony, Malala placed her copy of The Alchemist by Paolo Coelho in the library - the last book to go on the shelves. She has been given membership to access the archive.
Addressing the public, Malala said she was feeling very proud the building had been designed by a woman and the city was now her second home after her "beloved Pakistan".
The new Library of Birmingham was opened today by Malala Yousafzai
She said books were weapons to beat terrorism and "the only way to global peace is reading knowledge and education".
"Books are precious," she explained.
"Some books travel with you back centuries, others take you into the future. Some take you to the core of your heart and others take you into the universe.
"There's no better way to explain the importance of books than to show even God chose the medium of a book to send his message to his people.
"This library will continue to enlighten future generations.
"It is written that a room without books is like a body without a soul. A city without a library is like a graveyard."
Speaking of how Birmingham has become a home to her, Malala said: "This city is the beating heart of England.
"Birmingham is very special for me, because it was here I found myself alive seven days after I was shot."
She said the "great people" of the city gave her moral support.
"This event proves this city loves me and I love it too."
'Digital and traditional'
The library has been built to replace the previous Central Library, built in the 1970s, and described by Prince Charles as looking like a place where books would be incinerated rather than read.
Library of Birmingham
- Its most valuable books are copies of Shakespeare's First Folio and John James Audubon's Birds of America - worth between £6m and £7m each
- It can hold 3,000 people
- It has nine floors - three of which are out of bounds to the public
- It has a brown roof garden with wild flower meadow
BBC News - Library of Birmingham: Official opening of £189m building