The francophone dramedy Monsieur Lazhar is about a group of Montreal elementary students grappling with the death of their teacher.
It's up against Belgium's Bullhead, Israel's Footnote, Poland's In Darkness and Iran's A Separation,' which won the Golden Globe for best foreign-language film earlier this month.
It's the second year in a row a Quebec filmmaker is vying for an Academy Award.
Last year, Denis Villeneuve was in the running in the same category for his war drama, Incendies. The Oscars will be handed out Feb. 26.
Monsieur Lazhar already has nine Genie Award nominations and previously collected TIFF's award for best Canadian feature and the Toronto Film Critics Association's Rogers Best Canadian Film Award.
Falardeau is not Canada's only hope in the category.
Poland's In Darkness is a Canadian-Poland-German co-production written by Toronto's David Shamoon and produced by Canadians Eric Jordan and Paul Stephens.
The film is set in Nazi-occupied Poland and is based on a true story about a Polish sewer worker who agrees to hide a group of Jewish men, women and children in the sewers.
In Darkness is being released in Canada on Feb. 17, and Monsieur Lazhar hits select cities this Friday.
Another Canadian in the running for Hollywood's biggest prize is acting legend Christopher Plummer. The acting veteran is nominated for Best Supporting Actor for his performance as a widower who comes out of the closet in Beginners.
With Files From The Huffington Post Canada