The love story between a deaf boy and an autistic girl beat 19 other films to compete in the 'Best Foreign Language Film' category.
"We are so proud to announce that our Barfi! is the official Indian selection for the Oscars this year," producers UTV Motion Pictures revealed today (September 22).
Lead actress Priyanka Chopra - who is currently in Los Angeles - took to Twitter to congratulate the cast and crew of the film on its nomination.
"Yaaaaaay!! India's official entry to the Oscars!!! Anurag sir, RK, Ills, Ronnie, Sid n all! Wish I was in India to share this! Go team! (sic)" she wrote.
Described as a differently-abled romantic comedy, the film is said to draw on influences including Amelie, early Charlie Chaplin, Buster Keaton, Frank Capra, Raj Kapoor and Mr Bean.
Ranbir Kapoor recently told Digital Spy that the hardest thing for him as an actor in the project was the level of physical comedy.
He said: "This film really wasn't challenging in the way people think. Because I'm playing deaf and mute, they think that it must have been one of those method acting films and it must be really depressing, but actually it's a joyful entertainer.
"So it wasn't challenging in the way that people expect, but it was challenging because there was a lot of physical comedy."
> Read our Ranbir Kapoor interview here
Watch a trailer for Barfi! below: