Oscar Fashion – Best Dressed on the Red Carpet!

Some of Hollywood's leading ladies looked absolutely gorgeous in their sultry designer gowns and timeless jewelry.

And, while red seemed to be the No. 1 choice for most ladies on the red carpet, only one lady in red topped our list of the five best-dressed women last night.

Here's eGossip's list of best-dressed at the Oscars:

*Click Images to Enlarge

1. Cameron Diaz - Cameron Diaz always steps onto the red carpet in the most luxurious gowns. Last night, the 35-year-old actress looked absolutely stunning in this pale pink Dior gown by John Galliano. Paired with Bulgari jewelry and a messy ponytail, Cameron Diaz successfully earned our No. 1 position for best-dressed this year. Eat your heart out Justin!

2. Penelope Cruz - Penelope Cruz turned heads last night when she hit the red carpet in this navy blue, haute couture Chanel gown. Intricate detailing, simple jewelry and a sophisticated up-do made this an award-winning look. Eat your heart our McConaughey.

3. Heidi Klum - Of all the ladies dressed in red last night, Heidi Klum was the only one to top our list of best-dressed. This fiery hot, taffeta gown by John Galliano looked absolutely stunning on the petite Victoria's Secret model. The unique neckline made this dress stand out from all the rest on the red carpet. Heidi was the model of perfection last night.

4. Jennifer Garner - Jennifer Garner is the only women who could make traffic stop in a plain back gown and little jewelry. Nothing particularly unique about her look last night, Garner managed to make almost every best-dressed list by wearing a simple black gown and a messy up-do. Ben Affleck is one lucky man.

5. Kelly Preston - Kelly Preston took a real chance with this orange/yellow Roberto Cavalli gown last night - and it paid off. Preston rocked the red carpet in the figure-hugging designer gown - a huge improvement from last year's leopard-print fiasco. If nothing else, Kelly added a little bit of brightness to the red carpet. Nobody will complain about that.

There's our list of the top five best-dressed. Do you agree with our choices - or do you think someone else is more deserving?

Now that you've seen who topped our list of best-dressed, why not take a look at who topped our list of worst-dressed on the red carpet?

* All Photos via WENN/ Nikki Nelson