The final Lord of the Rings film is hot favourite to sweep this year's Oscars after being given 11 nominations.
The Lord of the Rings director Peter Jackson is up for best director
The Return of the King is up for the prestigious best picture prize, best director and best adapted screenplay.
Naval adventure Master and Commander has 10 nominations while Civil War epic Cold Mountain and depression-era drama Seabiscuit have seven each.
Renee Zellweger, Diane Keaton, Sean Penn, Johnny Depp and Jude Law all earned nominations for their acting.
But Nicole Kidman, Russell Crowe, Tom Cruise and Jack Nicholson were among the big names to miss out.
The Lord of the Rings film-maker Peter Jackson heads the nominees for best director - but faces stiff competition from Lost in Translation's Sofia Coppola.
The daughter of Francis Ford Coppola, she is only the third female director to be nominated in Oscars history.
Clint Eastwood is in the running for directing murder thriller Mystic River, Australia's Peter Weir is nominated for making Master and Commander and Brazilian director Fernando Meirelles is a surprise nominee for City of God.
New Zealand actress Keisha Castle-Hughes, 13, who starred in independent hit Whale Rider, is a surprise contender for best actress.
She is the youngest person to be nominated for the award in Oscars history - the previous youngest was Isabelle Adjani, who was aged 20 in 1976.
Britain's Samantha Morton is another unexpected best actress nominee for In America, while Naomi Watts' powerful performance in gritty drama 21 Grams has been recognised.
Charlize Theron's acclaimed role in Monster and Diane Keaton's performance in Something's Gotta Give have also earned nominations.
In the best actor category, British stars Jude Law and Ben Kingsley are in the running.
MAIN OSCARS NOMINEES
The Lord of the Rings: The Return of the King - 11
Master and Commander - 10
Cold Mountain (above) - 7
Seabiscuit - 7
Mystic River - 6
Pirates of the Caribbean - 5
City of God - 4
Lost In Translation - 4
Finding Nemo - 4
The Last Samurai - 4
Also in the contention are Sean Penn for Mystic River and Bill Murray for comedy Lost In Translation. Johnny Depp is nominated for Pirates of the Caribbean.
On the best supporting actor list, Tim Robbins is named for Mystic River and Benicio Del Toro is nominated for 21 Grams.
Alec Baldwin is shortlisted for comedy drama The Cooler, and The Last Samurai star Ken Watanabe becomes only the second Japanese actor to be nominated.
African actor Djimon Hounsou, from Benin, is nominated for immigration drama In America.
In the supporting actress category, Cold Mountain star Zellweger - winner of the Golden Globe for best supporting actress - has been nominated for an Oscar in the same category.
Zellweger, 34, got her third nomination in a row after being nominated for best actress for Bridget Jones's Diary in 2002 and Chicago in 2003.
BEST PICTURE CONTENDERS
The Lord of the Rings: The Return of the King - 1/3
Mystic River (above) - 3/1
Lost in Translation - 5/1
Master and Commander - 25/1
Seabiscuit - 100/1
And Holly Hunter is up for her role as a single mother in Thirteen, while Marcia Gay Harden is also in the running for Mystic River.
A surprise nominee is Iranian Shohreh Aghdashloo, who is nominated for best supporting actor in House of Sand and Fog.
Triple Oscar nominee Sigourney Weaver joined Academy of Motion Picture Arts and Sciences president Frank Pierson to read out the key nominees on Tuesday. The Oscars will be handed out in Hollywood on 29 February.
Last year, musical Chicago was named best picture, with Adrien Brody winning best actor and Nicole Kidman picking up best actress.