The Favourite and Roma are the Oscars frontrunners after receiving 10 nods each, with several other nominees also making Academy Awards history.
Both films are up for best director and best picture, a first for streaming giant Netflix for Roma.
Also nominated for best picture are A Star Is Born, Green Book, BlacKkKlansman, Bohemian Rhapsody, Vice and Black Panther - which becomes the first superhero film to be shortlisted in the category.
And veteran film-maker Spike Lee, who spoke to Sky News in December about the lack of diversity at the Oscars, is nominated in the best director category for the first time in his 40-year-career.
However, after much backlash about representation of women and ethnic minorities over the past few years, there are yet again no women nominated in the best director category - meaning Kathryn Bigelow, who won the award for The Hurt Locker in 2010, will remain the only female winner of the prize for another year at least.
But there was good news for British stars, with Olivia Colman and Christian Bale following on from their Golden Globes success with nominations in the best actress and best actor categories.
Colman, from Norwich, stars as Queen Anne in The Favourite, while Bale was recognised for his portrayal of controversial former US vice-president Dick Cheney in Vice.
Colman is up against Glenn Close for The Wife, Yalitza Aparicio for Roma, Melissa McCarthy for Can You Ever Forgive Me?, and Lady Gaga, who earns her first acting Oscar nomination for her role in A Star Is Born.
The singer also picked up another nod for best original song for Shallow, along with co-writers Mark Ronson, Anthony Rossomando and Andrew Wyatt.
Bale is shortlisted alongside Bradley Cooper for A Star Is Born, Willem Dafoe for At Eternity's Gate, Rami Malek for Bohemian Rhapsody, and Viggo Mortensen for Green Book.
British stars have also done well in the supporting actor and actress categories, with Rachel Weisz going up against her The Favourite co-star Emma Stone, and Richard E Grant picking up his first Oscar nod for Can You Ever Forgive Me?
As well as Stone, Weisz faces competition from Amy Adams for Vice, Marina de Tavira for Roma, and Regina King for If Beale Street Could Talk.
Grant is up against Sam Rockwell for Vice, Adam Driver for BlacKkKlansman, Sam Elliott for A Star Is Born and Mahershala Ali for Green Book.
In the directing category, Cold War's Pawel Pawlikowski and Vice's Adam McKay complete the shortlist alongside Lee, Yorgos Lanthimos (The Favourite) and Alfonso Cuaron (Roma).
Notable absences from the shortlist include British stars Claire Foy for First Man and Emily Blunt for Mary Poppins Returns, as well as Cooper in the directing category.
© Sky News 2019