The 33-year-old was a star performer as Croatia reached its first World Cup final and his performance at Russian Federation 2018 saw him win the Golden Ball for the tournament's best player.
Modric beat out Liverpool's Egyptian forward Mohamed Salah and Ronaldo, who along with Messi did not attend the glitzy awards ceremony in London.
There was a great deal of confusion when Salah received the Puskas Award for his effort against Everton.
"I don't want to enter into the debate of whether it is deserved or not", he said. "I would like to thank the whole team".
"It is a dream come true, to play for the best club in the world and to win trophies with them and also to be captain of Croatia, that is special to me", Modrić said after winning the earlier award.
Modric defeated the duo of Mohammad Salah of Liverpool and Juventus star, Cristiano Ronaldo to emerge the victor.More news: Kavanaugh accuser willing to testify in US Senate
Peruvian fans were selected for their incredible passion, loyalty and excitement while following their national team.
That is why Modric has the better chance of winning the award by the virtue of his silver medal from the Federation Internationale de Football Association world cup in Russia.
Lionel Messi was a notable absentee from the final three-man shortlist and neither he nor Ronaldo were present at the ceremony in London.
Thanks to those who voted for me.
"I've always wanted to see a woman win this prestigious award", Brazil worldwide Marta told France Football.
The victor of the FIFA Award is picked after the votes are split between national coaches of FIFA Member Associations, their team captains, a select group of media from those countries, and fans.