WENN reports that, just hours before the hip-hop group were due to perform, a statement was released saying: "Beastie Boys regret that Adam 'MCA' Yauch will be unable to join Mike 'Mike D' Diamond and Adam 'Ad-Rock' Horovitz at the band's induction into the Rock 'n' Roll Hall of Fame.
"Mike, Adam and Adam are truly grateful for the honour but with only two of the three Beastie Boys attending, they will unfortunately not be able to perform at the ceremony."
No reason was given as to why Yauch was unable to attend, but the 47-year-old rapper has had a long-time battle with cancer since 2009.
Rod Stewart also pulled out of the ceremony because of illness.
Rocker Axl Rose caused some controversy when he announced he was declining his award and would not be attending the prestigious ceremony, as he did not want to be inducted as a member of Guns N' Roses.
Other inductees at the event included the Red Hot Chili Peppers, Donovan, Tom Dowd and The Faces/The Small Faces.
Watch the Beastie Boys' video for 'Sabotage' below: