The reclusive star from Co Donegal will see her haunting melody from blockbuster Lord Of The Rings battle it out next month for the coveted gold statue.
The 40-year-old singer songwriter, who was also nominated for a Golden Globe Award, had the biggest selling album in the world last year with A Day Without Rain.
And for the first time ever the Irish have made it into the best short animation category - and not just once but twice.
Give Up Yer Aul Sins director Cathal Gaffney said yesterday: "We only found out about an hour ago and we've been jumping up and down since.
It's fantastic to be nominated like this and it's the first time ever for an Irish company to get in. "The fact there are two of us for the prize is brilliant as far as we're concerned.
It means there's a good chance the Irish will bring an Oscar home."
The production by Dublin company Brown Bag Films is up against Fifty Per Cent Grey by Zanita Films. Director Ruairi Robinson has already had international success with his dark short film - winning Best Short award at the London Effects and Animation Festival this year.
Ruairi, 23, said yesterday: "I don't know what this all means yet. I haven't formulated my thoughts on it.
All I know is that I'm pretty excited about it all." But all will be revealed on March 24 at the 74th annual Oscars which take place in Los Angeles. Enya, thought to be worth more than d72million, will perform May It Be for the star-studded audience.
Co-writer Nicky Ryan said yesterday they were delighted with the nomination.
He added: "I was talking to Enya as soon as I heard the news and she's absolutely thrilled."
Nicky has been Enya's song-writing partner "since the beginning". He said: "Enya and I composed the music and my wife Roma wrote the words.
"It's the first time we've ever composed a song for a Hollywood blockbuster and it's great that it's worked out so well.
"Lord of the Rings is up for 13 Oscars which is incredible - it's such a privilege to be involved in something this big."
Design by Ydaff © 2003-2008