IN a monumental fail, the Best Picture gong at the Academy Awards has been mistakenly presented to La La Land - when Moonlight was the actual winner.
After reading out the nominations, Hollywood icons Warren Beatty and Faye Dunaway opened the envelope and awkwardly fumbled with it before announcing the winner.
Beatty seemed unsure as he paused and looked at Dunaway, who then glanced down at the paper and confidently said: "La La Land".
As the film's elated producers accepted the award, their joy quickly turned to shock and disbelief when it was revealed the winner was actually Moonlight.
Fred Berger, one of La La Land's producers, was mid-speech when murmuring began behind him.
As he realised the news, Berger blurted into the microphone: "We lost by the way, but you know what ..." he said.
While the audience and viewers tried to comprehend what was going on, Jordan Horowitz, another producer, took over the microphone.
"I'm sorry, no, there's a mistake. Moonlight, you guys won best picture. This is not a joke. Come on. This is not a joke. I'm afraid they read the wrong thing," Horowitz said.
The envelope was held up to the camera. And in bold print was the winner: Moonlight.
"Guys ... This is very unfortunate what happened. Personally, I blame Steve Harvey for this," Kimmel said, joking about the mistake Steve Harvey made when he announced the wrong winner at Miss Universe in 2015. "I would like to see you get an Oscar anyway. Why can't we just give out a whole bunch of them."
Moonlight director Barry Jenkins, who immediately paid homage to La La Land, told a stunned audience during his acceptance speech: "It is true. It's not fake."
After the award was handed to the correct winner, Warren Beatty explained his mistake.
"I want to tell you what happened. Oh. I opened the envelope. And it said Emma Stone, La La Land. That's why I took such a long look at Faye and at you. I wasn't trying to be funny."
And eagle-eyed viewers were quick to note Beatty was actually holding the envelope labelled "Actress in a Leading Role".
Kimmel closed the awards, telling the audience it was "just an awards show".
"Well, I don't know what happened. I blame myself for this. Let's remember it's just an awards show," he said. "I mean, we hate to see people disappointed. But the good news is we got to see some extra speeches. We have some great movies. I knew I would screw this show up. I really did. Thank you for watching. I'm back to work tomorrow night … I promise I'll never do this again."
Australian betting website SportsBet has paid out more than $40,000 to more than 350 punters who bet on La La Land winning the top gong as well as paying those who backed rightful winner Moonlight.
The huge mistake overshadowed what could've been considered a five-star Oscars ceremony that included the perfect mix of jokes, running gags and stunts.
As well as endless trolling of his arch nemesis Matt Damon, Kimmel pulled his own viral stunt that rivals Ellen DeGeneres' now iconic all-star selfie.
One of those stunts included Kimmel tweeting US President Donald Trump to see if he was tuning in.
While President Trump has yet to reply, Kimmel's tweet has been re-tweeted more than 200,000 times.
The awards host also shocked A-listers by letting passengers on a celebrity tour bus in.
The touristy Americans were allowed in to the Dolby Theatre where they mixed and mingled with the stars.
The stunt came after Viola Davis couldn't hold back tears as she beat Nicole Kidman to an Oscar, after a record was broken when the first Muslim actor got an Academy Award.
Davis took the Best Supporting Actress Award for her role in Fences.
Earlier, Mahershala Ali, whose powerful performance in Moonlight got him a Best Supporting Actor gong.
"I want to thank my teachers, my professors," Ali - the first Muslim actor to win an Oscar - said in an emotional speech. "I had so many wonderful teachers, and one thing that they consistently told me. . . [is] it wasn't about you. It's not about you. It's about these characters."
Host Jimmy Kimmel opened the awards on a high, and roasted Matt Damon.
Kimmel and Damon have a long feud. Kimmel also took aim at the Manchester By The Sea producer as he sat in the audience during Kimmel's well-received opening monologue, that included subtle jabs at President Donald Trump.
The Oscars started off on an upbeat note with Justin Timberlake dancing in the aisles of the Dolby Theater and interacting with some of Hollywood's biggest stars.
Timberlake kicked off the show with a performance of his Oscar-nominated song "Can't Stop the Feeling" that included a high-five with Denzel Washington. Actor Javiar Bardem danced like he was in a nightclub.
The singer had promised a politics-free opening to the 89th annual Oscars, and he delivered.
Host Jimmy Kimmel kept the mood light in his opening, telling Timberlake that if his former bandmates in 'N Sync were watching, they'd let him back into the band.
Kimmel didn't stray entirely from politics, and urged audience members to reach out to someone with opposite views from them. He also took a shot at President Donald Trump, saying his policies had made the Oscars seem less racist.
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