Caine, who plays butler Alfred Pennyworth in the latest installment of the "Batman" action series, said Friday Ledger's performance as the Joker definitely is worthy of an Academy Award, People magazine reported.
"I think Heath will surely get a posthumous nomination for an Academy Award," Caine said during an honorary ceremony at Grauman's Chinese Theatre in Hollywood.
"He was incredible (and) he was amazing. And I think he will get it. It's an incredible performance, just wonderful."
In "Knight," Ledger plays the Joker, a psychotic villain who opposes the super hero Batman. Ledger died in January of an accidental drug overdose shortly after filming the sequel to "Batman Begins."
People said the director of both films, Christopher Nolan, also has raved about the late actor's performance.
"(For) those who knew him and those who had the privilege of working with him, it's been pretty amazing, the disparity between the person he was and the monster that he created for us," Nolan said in June.