Whitney Houston was honoured at the 84th Annual Academy Awards last night.

The iconic singer died in a Los Angeles hotel on February 11 aged just 48. Her passing sent shockwaves around the world, just one day before the Grammy Awards took place.

Last night, Whitney was remembered at the Oscars in a montage titled In Memoriam, presented by host Billy Crystal.

The clip included a number of producers, costume designers, directors and film stars who have passed away in the last year.

Elizabeth Taylor and Apple co-founder Steve Jobs were also honoured in the heartfelt montage.

Esperanza Spalding wowed with a version of What a Wonderful World as the clips played. Her powerful performance was backed by the Southern California Children's Choir.

As she sang her emotional rendition, the black and white clips were played behind her on a big screen.

The audience at the Kodak Theatre was politely asked to hold their applause until the last clip concluded on the montage.

Meanwhile, The Muppets took home the best song gong at the ceremony. Songwriter Bret McKenzie was presented the award for Man or Muppet.

It was written by the actor and performed by The Muppets actor Jason Segel as Gary and Peter Linz as Walter the Muppet.

It was touted as the front runner for the prestigious gong.