'Glory' plays over the closing credits of the film about the historic 1965 Selma to Montgomery voting rights marches led by Martin Luther King Jr (played by David Oyelowo), James Bevel and Hosea Williams.
It was written at the request of director Ava DuVernay.
This is the first Oscar for both the musicians.
In his acceptance speech, Common, 42, recalled how they performed on Edmund Pettus Bridge, an important landmark in the civil rights struggle where marchers were attacked while protesting in 1965.
Legend, 36, echoed Common's sentiments, saying, "Selma is now because the struggle for justice is right now."
The speech left 'Selma' star David Oyelowo, producer Oprah Winfrey and actress Jessica Chastain in tears.
'Glory' also talks about the unrest in Ferguson, Missouri, in August 2014, following the fatal shooting of Michael Brown.
The Academy faced flak for failing to nominate Oyelowo and Duvernay.
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