The guitar great handed Ed an instrument off his wall when the "Shape of You" singer visited his home years ago, and Sheeran put it on display in his home studio.
A blaze partly destroyed the place while he was on tour and devastated Ed feared he'd have to trash the axe, but a pal offered to try and restore it for him.
"The guy I was working with, Joe, says, 'Gimme the guitar, let me see what I can do with it,' and about a year later he brought it back and it had been totally restored," Ed tells "Hot Ones".
"It smells like a burned house; it's got this really, really burned wood smell, but it plays amazing, looks amazing... and still has Eric's signature on the back."
Elsewhere in the interview, Ed talked about decision to give away songs. "I know the people involved will deny this to the hilt, but there is no way that I would have given this song away if people liked it," he spilled, "but when I wrote Justin Bieber's 'Love Yourself' I remember playing that to people and them being like, 'Meh,' so I gave it away and now it's like, 'Why did you give it away? You never played this to us!' "
"I had an email the other day... I'd gone round this bloke's house and I played him this song three times," he continued, "and played it on acoustic guitar and then I came to America, I played it to a couple of people, they emailed him and then he emailed me, like, 'What the f**k, this is the best song...!' and I was like, 'Dude, I literally played you the song three times a week ago and you weren't feeling it then.' "