Navalny took home the Oscar for Best Documentary Feature Film, with director Daniel Roher using his acceptance speech to hit out at Russian President Vladimir Putin.
The film revolves around Russia's most prominent opposition leader Alexei Navalny and the events related to the 2020 poisoning which almost killed him.
Navalny follows Alexei as he recovers in Germany.
Western nations said the poisoning was a Russian state assassination attempt to silence the outspoken critic of Putin. The Kremlin denied any involvement.
Taking to the stage at the 95th Academy Awards, Daniel Roher dedicated the win to Navalny and political prisoners around the world.
Serena Williams finally breaks silence on Will Smith Oscar slap one year onHe said: "Alexei, the world has not forgotten your vital message to the world."
Navalny's wife, Yulia Navalnaya, added: "My husband is in prison just for telling the truth. My husband is in prison just for defending democracy.
"Alexei, I am dreaming of the day when you will be free and our country will be free. Stay strong my love. Thank you."
His daughter, Daria Navalnaya, attended the Oscars ceremony as well and said she was "very happy that the movie is getting the attention that it deserves."
The documentary worked with investigative news outlet Bellingcat as they unmasked FSB agents sent to poison Navalny in 2020.
In the film, Navalny, pretending to be a Russian official, calls one of the agents who describes the poisoning plot.
He returned Russia in January 2021 with his wife and crowds of supporters awaited his arrival.
Alexei was arrested at the airport and later sentenced to a combined 11-1/2 years in jail in two separate fraud cases, which he says were trumped up to silence him.
His anti-corruption organization was banned as extremist.
Last year the category for Best Documentary Feature Film was presented by Chris Rock, and preceded Will Smith's infamous slap.
Richard E Grant makes cheeky quip over Will Smith Oscars slap as he hosts BAFTAs