Mundy is one of two Fremantle players in the prestigious 22 named on Tuesday night, along with Nat Fyfe.
The on-baller has been in remarkable form in his 12th AFL season, averaging 27 disposals per game, seven more than his career average.
“It’s obviously a big surprise,” Mundy said.
“Just to get into the 40 (squad) is a good achievement, there are some great names within that group.”
Mundy said he was humbled to get his first Virgin Australia AFL All Australian guernsey.
He said 2015 was his most consistent year, having played 22 games and remaining injury free.
“To be finally selected in the 22 is a great surprise and a great honour,” he said.
“I think it’s been my most consistent year.
“I’ve been able to get through the year without too much interruption and that started right from the pre-season.”
Mundy now joins esteemed company such as Gary Ablett Snr, Wayne Carey and Chris Judd.
“They are absolute greats of the game and to be in the same conversation is nice, but probably a little bit unwarranted,” Mundy said.
Mundy is arguably one of the competition’s most underrated players and aged 30, continues to improve.
He passed his personal best in the pre-season 3km time trial and sits fifth on Fremantle’s all time games list with 232.
Mundy (4809) is ranked second for most disposals in the club’s history, only behind captain Matthew Pavlich (5852).