Timothy Biles, 89, of Sherborne, was found guilty at Bournemouth Crown Court of five counts of indecent assault.
The offences took place at St Francis School in Hooke near Beaminster, which has since closed.
Biles retired in 2000, though he could still lead and preach at church services, and had been in ministry in West Dorset. In 2020 he received an MBE from the Queen.
His "permission to officiate" was removed when the police investigation began.
The Bishop of Salisbury, the Rt Revd Stephen Lake, said the "appalling" abuse had "rightly resulted in a significant custodial sentence".
He said he was removing the award of Canon Emeritus and "taking the necessary steps" to recommend the MBE was removed too, which will ultimately be decided by the Forfeiture Committee.
He said: "I want to thank the victims and survivors for their bravery in coming forward.
"I hope and pray the verdict and today's sentence offers an opportunity to begin to heal from the trauma they have suffered."
The Diocese of Salisbury said it was "horrified" to hear of Biles' offences, and wanted to honour the "courage of the victims and survivors who have come forward to support the prosecution".
It said the offences were committed when he was a member of staff and school chaplain at the independent St Francis school.
"We have provided every assistance to the police with their enquiries," it said.
"Our prayers are for the survivors. We urge anyone with a concern regarding abuse whether current or in the past, no matter how long ago, to contact the police.
"Advice and support can also be obtained from the independent charity Safe Spaces or the diocesan safeguarding team."
Revd Canon David Baldwin, in a statement issued after Biles was found guilty, said: "The Diocese was informed in 2022 that the police were investigating complaints against Tim and the full protocol over who should have been informed was followed - this included the Rector and Safeguarding Officer for Sherborne Abbey."
He said although Biles permission to officiate had been revoked "he never informed me on the occasions that I invited him to take part in services in the Beaminster team".
He called it a "very difficult situation" which would "cause great sadness for some and will allow others to vent their frustration and anger towards the church so soon after the resignation of The Archbishop of Canterbury".