The pharaos were indeed worshipped as literal gods. Echnaton famously negated them all except for the sun and himself as the incarnation, but after his death all was restored to the normal system of polytheistic theoraty. The sungod Ra was still important, but not the most important. It was a complicated system and very different from our modern thinking.

They also had the concept of the deification of the Pharaoh, much like the Romans later deified the Augustus.