The show started off on a two-dimensional note as the cartoon-fronted rock group Gorillaz performed their record of the year contender, Feel Good Inc with the help of animation, a blue screen and guest rappers De La Soul.
Madonna then took to the stage, as the Queen of Pop, who was not nominated for any awards, shimmied through the Gorillaz's virtual space and returned to reality with her traditional crew of dancers while singing her latest hit, Hung Up.
U2 big winner
U2 was the biggest winner of the night, taking home their 20th Grammy of their careers, including one album of the year for How To Dismantle an Atomic Bomb - the same disc that earned them three awards last year.
"Being in a rock band is like running away with the circus except you always think you're gonna be the ringmaster. You don't expect that on more than a few occasions you may look ... the clown, the freak." U2 frontman Bono said while accepting that award.
Adding later when he was back on the stage accepting the award for song of the year for Sometimes You Can’t Make It On Your Own, "If you think this is going to go to our head, it's too late."
Mariah Carey Comeback
Comeback queen Mariah Carey, one of the best-selling artists of all time, was nominated for a leading eight awards for The Emancipation of Mimi.
No woman has ever won more than five in one night – a record held jointly by Norah Jones, Beyonce, Alicia Keys and Lauryn Hill.
And Ms Carey wasn’t going to break that record, despite a good start when she won three awards in the pre-telecast ceremony.
But she didn’t fair so well when the cameras were on, besides losing album of the year to U2, she lost best female pop vocal performance to Kelly Clarkson's triumphant Since U Been Gone, song of the year to U2 and record of the year to Green Day.
She was the sentimental favourite for the night, overcoming personal difficulties and a career slump to emerge with the top-selling album and the most popular song, We Belong Together.
But her comeback was upstaged by another comeback.
Sly Stone performance
The appearance of Sly Stone, the mercurial, psychedelic pioneer who disappeared from the music scene decades ago and hadn't performed in public since 1993, sent the stars talking.
Toward the end of a sizzling all-star tribute to Mr Stone, the man himself emerged, sporting a pale Mohawk against his 61-year-old brown scalp, and made his way through I Want To Take You Higher.
Though the tribute was planned, many didn't expect the actual singer – who hasn't performed in public in years – to show up.
Australian country music star Keith Urban was answering questions backstage when Stone's performance began playing on a nearby monitor, and he had to stop talking.
"I think we just got upstaged," Urban said in amazement.
"Everything pales in comparison," he added.
Major awards
John Legend won three awards: best new artist, best R&B album for his debut, Get Lifted, and best male R&B vocal for the piano ballad Ordinary People.
His mentor, Kanye West, also won three, matching his total for last year.
The brash rapper/producer played up, or lived up to, his egotistical reputation as he won best rap album for Late Registration.
"I had no idea, I had no idea," West said in mock shock as he pulled a huge sheet of paper that read "Thank You List."
Former American Idol winner Kelly Clarkson won two awards, including best pop album.
"I'm sorry I'm crying again on national television." Kelly Clarkson said, accepting the female pop vocal performance Grammy for Since U Been Gone.
While Stevie Wonder, who released his first album in ten years last year, had two.
Punk rockers Green Day won the Record of the Year for their single "Boulevard of Broken Dreams" beating out Mariah Carey, Gorillaz, Gwen Stefani and Kanye West.
Australian wins
Australian star Keith Urban won a Grammy for the best country vocal performance with You’ll Think of Me.
But Australian pop icon Kylie Minogue missed out in her category.
Performances
But what’s a music show without the performances?
A brief, impromptu performance by Ms Keys and Mr Wonder energised the crowd.
Mr Wonder pulled out his harmonica and the two soulfully sang his classic Higher Ground as a tribute to the late Coretta Scott King, who was buried yesterday.
"Let's keep trying to reach that higher ground," Keys said. "I forever want to reach that higher ground."
Despite having won 13 Grammys in the past, this award night was the first time former Beatle Paul McCartney had taken to the stage to sing.
"I finally passed the audition," the 63 year old said, before launching into a raucous version of the Beatles' "Helter Skelter."
He was also featured in the night's most intriguing music mix, walking onstage to sing Yesterday with rockers Linkin Park and rap mogul Jay-Z.
And aside from winning the most awards, U2 provided one of the more rousing performances as they sung their hit Vertigo, and then collaborated with R&B queen Mary J Blige's gospel-inflected fervour for their classic One.