The Recording Academy announced Lamar was the top contender with eight nominations, including seven for his musical companion to the Marvel Studios juggernaut starring Chadwick Boseman and Michael B. Jordan.
Dan + Shay scored a nod for Best Country Duo/Group Performance for their song "Tequila" while group member Dan Smyers was also nominated for Best Country Song for helping to pen the tune.
British sensation Dua Lipa has been nominated for two Grammy awards.
Lamar was nominated for the Black Panther album compilation he executive produced for the blockbuster film.
Drake is right behind Kendrick with 7 nominations.
At least Kanye West and Taylor Swift won't be dueling at this year's Grammy Awards.
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As the New York Times notes, women also lead in some of the biggest categories this year; the awards show received criticism for a lack of diversity in the past.
In the decades Hip-Hop has been around, only twice did artists within the Hip-Hop community win album of the year. Beyoncé had to make do with just three, all of which she shared with husband Jay-Z - music video "Apes-t", R&B performance "Summer" and urban contemporary album Everything is Love.
Drake's Toronto-based collaborator Boi-1da was nominated as producer for his body of work this year, which includes songs with Cardi B, G-Eazy, and Beyonce and Jay-Z's project the Carters.
Gaga, who earned acting and music Golden Globe nominations on Thursday, picked up four Grammy nominations for "Shallow", while "Joanne" is up for best pop solo performance.
The winners will be revealed at the Recording Academy's annual ceremony, which will air live for Los Angeles on February 10.
- Best jazz vocal album: "My Mood Is You", Freddy Cole; "The Questions", Kurt Elling; "The Subject Tonight Is Love", Kate McGarry With Keith Ganz and Gary Versace; "If You Really Want", Raul Midon With The Metropole Orkest Conducted By Vince Mendoza; "The Window", Cecile McLorin Salvant.