John - who was accompanied by his wife Kelly Preston - did the famous dance which helped him earn a Best Actor nomination and other celebrity guests "followed and started dancing", according to the New York Post newspaper.
Celebrities at the party, which took place at the Los Angeles home of Madonna's close friend and manager Guy Oseary, included Oscar-winning 'Lincoln' actor Daniel Day-Lewis, Channing Tatum and Selena Gomez.
Meanwhile, the 'Hung Up' songstress took the occasion to dress up, sporting a metallic green Altuzarra dress with black fur trim and a black wig styled glamorously like movie icon Bettie Page.
Posting a picture on Instagram, Madonna, 54, wrote: "And the Oscar goes to #ALTUZARRA. (sic)"
And posting a headshot of her Old Hollywood hairdo, she questioned: "Do blondes really have more fun?"