The Latin Grammy Award for Album of the Year is an honor presented annually at the Latin Grammy Awards, a ceremony that recognizes excellence and creates a wider awareness of cultural diversity and contributions of Latin recording artists in the United States and internationally. The award is given to the performers, producers, audio engineers and mastering engineers for vocal or instrumental albums with 51 percent of new recorded songs. Albums of previously released recordings, such as reissues, compilations of old recordings and greatest hits albums packages are not eligible. Due to the increasing musical changes in the industry, from 2012 the category includes 10 nominees, according to a restructuration made by the academy for the four general categories: Song of the Year, Record of the Year, Best New Artist and Album of the Year.Beginning in 2018, songwriters are eligible for the accolade if 33% of the playing time are composed by them.

The Latin Grammy Awards are awards presented by the Latin Recording Academy to recognize outstanding achievement in the Latin music industry. The Latin Grammy honors works recorded in Spanish or Portuguese from anywhere around the world that has been released in Ibero-America. Ibero-America, as defined by the Latin Recording Academy, encompasses Latin America, Spain, Portugal, and the Latino population in Canada and the United States. Submissions of products recorded in languages, dialects or idiomatic expressions recognized in Ibero America, such as Catalan, Basque, Galician, Valencian, Nahuatl, Guarani, Quechua or Mayan may be accepted by a majority vote. Both the regular Grammy Award and the Latin Grammy Award have similar nominating and voting processes, in which the selections are decided by peers within the Latin music industry.