"I want to dedicate this film to the Filippino people and their struggle, and humanity's struggle," Diaz said as he received his prize.
Best actor went to Argentina's Oscar Martinez for his portrayal of a cynical Nobel Prize-winning author who returns to his village for the first time in 40 years in the comedy on art and fame, "The Distinguished Citizen".
US actress Emma Stone received the best actress prize for her depiction of a struggling thespian who falls head over heels in love with a jazz pianist -- played by Ryan Gosling -- in US musical "La La Land".
Fashionista-turned-director Tom Ford was awarded the Silver Lion grand jury prize for "Nocturnal Animals", a romantic thriller about former lovers starring Amy Adams and Jake Gyllenhaal, with a violent revenge tale told as a story within a story.
The Silver Lion for best director was divided this year between Mexico's Amat Escalante for "The Untamed", about the sex life of an extraterrestrial, tentacled creature, and Russia's Andrei Konchalovsky for Holocaust drama "Paradise".