The movie will premiere at the festival September 10 ahead of its limited release in theaters Apr. 8, 2016. Canadian director Jean-Marc Vallee, known for Dallas Buyers Club and Wild, helmed the film, and previously screened C.R.A.Z.Y. in competition in 2005.
Demolition follows an investment banker (Gyllenhaal) who loses his wife in a tragic accident. The character begins to unravel as he struggles with the loss, but forms a surprising connection with a custom service rep (Watts).
"Valle has a tradition of presenting strong characters who are on journeys to self-discovery and redemption, and is the only filmmaker in our history to present both an opening and a closing night film at the Festival," TIFF artistic director Cameron Bailey said in a press release.
Matt Damon and Jessica Chastain sci-fi film The Martian will also premiere at the festival, which runs from September 10-20. The movies will compete against such submissions as The Dressmaker with Kate Winslet and Freeheld with Julianne Moore and Ellen Page.