Directed by Laszlo Nemes, the film deals with Saul Auslander, a Hungarian member of the Sonderkommando, a group of Jewish prisoners forced to lead other inmates in Auschwitz- Birkenau to their deaths and dispose of their bodies in the crematoriums.
One day, Saul finds a young boy and, taking him for his son, tries to arrange for a proper Jewish funeral for him.
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"I share this with my actors, incredible cast and crew who believed in me and the project when no one did," Nemes said in his acceptance speech.
It is the second foreign film Oscar for Hungary which first won the Oscar trophy for Mephisto in 1981.
Court, India's official entry to the Oscars this year, dropped out of the competition in December.
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