"La La Land", which won six trophies including the best director and actress, was incorrectly declared best picture winner by Warren Beatty and Faye Dunaway at the ceremony.
However, midway through their victory speech, one of the musical's producers, Jordan Horowitz, realised the error and announced that the award actually belonged to "Moonlight".
Minutes after the shocking goof-up, Bollywood celebrities took to Twitter to share their views on the incident.
"What? I just can't believe what happened at the Oscars," Azmi posted.
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Farah wrote, "#Oscars saving the best moment for last! At least this doesn't happen in our award shows... We just give to whoever is still there in audience."
"OMG! It happened in OSCARS? Announced a wrong winner for the #thebestpicture #Moonlight vs #lalaland @TheAcademy #Oscars2017," actor Sonu Sood said.
Actress Saiyami Kher tweeted, "Did this really happen? #Oscars #lalaland #moonlight.
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