The 71-year-old Buddhist monk said: "I always consider him a very close, best of friends. Right from the beginning, I felt 'very nice person, good human'."
"He (has) proved a very wonderful, sensible, good human being."
During touching scenes the exiled Tibetan held hands with his host and the Duchess of Cornwall.
He has clearly built up a strong rapport with the future King, who he urged to carry on his work.
The pair shared lots of laughs during the one-hour meeting, during which the royal couple took their visitor to see a magnolia spectrum tree he planted in the garden during a visit in 2008.
The Dalai Lama is on a ten-day tour of Britain with a mission to spread his Buddhist teachings of peace and understanding to youngsters.