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Police Dog Storm was said to have shown "perseverance and determination" in tracking the suspects who hid underneath a riverbank and detaining them until officers arrived.
His handler PC Raymond Martin was driving along the M8 near Edinburgh on last May when he came across the car on its roof, straddling the hard shoulder and the inside lane.
After making enquiries with witnesses at the scene, it was established two men had fled towards the woodland.
PD Storm was able to pick up their scent and track the suspects through several fields, a river and an electric fence.
The dog's handler was electrocuted in the process of tracking the men but was able to continue the search.
Storm sniffed out the suspects 3.5km (2.1 miles) away and detained them until Police Scotland arrived to arrest and charge them with various offences.
The police dog, who retired after seven years of service, and PC Martin was awarded the British Transport Police's prestigious Bryan Trophy in recognition of their bravery.
PD Storm is the second winner of the Bryan Trophy, given in recognition of the most exceptional dog deployment of the year, following the first in 2020.
Chief Inspector Pete Kooper said: "Huge congratulations are in order for PC Martin and PD Storm who demonstrated exemplary perseverance and determination in tracking two suspects who had tried their best to flee the scene of a crime.
"It's a fitting end to an illustrious career in BTP for PD Storm who has spent seven years protecting the railway network in Scotland. We'd all like to wish him a very happy and much-deserved retirement."