Shankar, 92, who has been ailing for sometime and currently in the US for surgery, has been nominated for his album 'The Living Room Sessions Part-1'.
The album includes four tracks with Indian classical raagas like Malgunji, Khamaj, Kedar and Raag Satyajit.
Shankar, a three-time Grammy award winner, had recorded the album last year, with his long-time tabla companion Tanmoy Bose at his home in California.
His 31-year-old daughter Anoushka, who has been nominated twice for the award in the past, has managed a nomination in the same category with her album 'Traveller' which explores the links between Indian music and Spanish dance style flamenco.
Apart from competing with each other, the father-daughter duo are pitted against Hugh Masekela, Daniel Ho, and Amadou and Mariam who are part of the category with their albums 'Jabulani', 'On a Gentle Island Breeze' and 'Folila' respectively.
The 2013 Grammy Awards will take place in Los Angeles on February 10.