Owner Leonard Wood and drivers Cotton Owens, Herb Thomas and Buck Baker joined Wallace in the hall's fourth class.
Baker was tied with Fireball Roberts for the fifth spot after voting, so a second vote was held to determine the final position. NASCAR Chairman Brian France said it was the first time since the hall began that the panel had to break a tie.
Wallace won 55 Sprint Cup races in 706 starts and won the 1989 championship. He now works as a broadcaster.
The five men will be inducted in ceremonies at the NASCAR Hall of Fame in February.