Tagovailoa, a sophomore, has thrown 37 touchdown passes to just four interceptions while leading the undefeated Crimson Tide to the top spot in the College Football Playoff rankings.
The award's voters, made up of the 130 Football Bowl Subdivision head coaches and sports information directors, chose Tagovailoa over three other quarterback finalists -- Will Grier of West Virginia, Kyler Murray of Oklahoma Gardner Minshew of Washington State -- as well as Kentucky linebacker Josh Allen.
Tagovailoa is battling to get healthy in time to face Oklahoma in the College Football Playoff Semifinal at the Capital One Orange Bowl after leaving the SEC championship game with a high ankle sprain.
"I couldn't put a timetable on this," Tagovailoa said of his recovery on SportsCenter after accepting his award. "I'm just looking at trying to get better every day, and hopefully it feels a lot better leading up to the game."
Tagovailoa is only the second Alabama player to win the award in its 52-year history, after running back Derrick Henry received the honor in 2015.
The past five players to win the Walter Camp Award also went on to win the Heisman Trophy. This year's Heisman will be presented Saturday to one of three finalists: Tagovailoa, Murray or Ohio State quarterback Dwayne Haskins.
"As a kid you dream of this, winning a Heisman or just any individual award in general," Tagovailoa said. "I think it would be amazing if I did win it, but if I didn't, I mean, we've still got to finish out our season. It's not an individual sport, it's a team sport, and the best thing I have to offer to my team is giving it all I can."
Tagovailoa will get his Walter Camp Award trophy at a banquet in New Haven, Connecticut, on Jan. 12.