Alongside stars such as Lady Gaga and Taylor Swift, their new hit single "Dynamite" was nominated for the Best Pop Duo/Group Performance category.
A reaction video was posted on Twitter by the group, showing them cheering when their nomination was announced.
K-pop expert Jeff Benjamin tweeted that the nomination for the Grammy was a "huge long-awaited moment in their careers"
He added that for "music's biggest night" - to be held on 31 January - it represented a significant moment for diversity.
When it was released earlier in August, Dynamite, the band's first all-English single, topped the Billboards for weeks.
Social media was overwhelmed with news of the nomination, with many expressing praise and appreciation for the boy band, arguably one of the world's largest bands.
"I am so happy for you and the whole army!" said host James Corden of the talk show, referring to the fans of the boys who call themselves the Army.
And they had a lot to say as well of course.
"I am proud of the boys. they are fulfilling their dreams in America with music and projects that inspire young people," one fan said.
"Your dream finally came true, look how far you've come," added another.
As their nomination was revealed, BTS posted a video showing the band's four members jumping up from a sofa.
In an earlier interview with Esquire, BTS made no secret of their desire to win a Grammy, with member RM saying that the "Grammys are the final part of the whole American journey"
The band has also won the Billboard Music Awards and the American Music Awards.
They would become the first South Korean group to win all three major US music awards if they win a Grammy, according to Yonhap.
The art director for their Loving Yourself: Tear album was previously nominated at last year's Grammy Awards for best recording kit.
In recent years, BTS-mania has swept the globe, with the success of the boy band skyrocketing overseas.