It depends on what you consider a "sequel."

The Broadway Melody of 1936, nominated for Best Picture of 1935, was a continuation of MGM's successful series that began with 1929's Best Picture The Broadway Melody and would include additional installments in 1938 and 1940. But aside from the title and the backstage setting, the films had little connection to each other, having completely different characters and stories. Beginning in 1936, at least the casting gained some uniformity (Eleanor Powell starred in the final three installments, and Robert Taylor, Buddy Ebsen and George Murphy each appeared in two), but the actors played different characters in all the films (none of the cast of the 1929 version appeared in any of the later installments).

A more literal sequel was 1945's Best Picture nominated The Bells of St. Mary's starring Bing Crosby and Ingrid Bergman and directed by Leo McCarey. It continued the story of Father Chuck O'Malley, Crosby's character from previous year's Best Picture, Going My Way. While shooting the sequel, Crosby and McCarey won the Oscars for Best Actor and Director, and Bergman won the Best Actress Award for Gaslight. When she accepted the trophy, she said "I'm so glad I won. I was afraid if I showed up on the set without an Oscar tomorrow, Bing and Mr. McCarey wouldn't speak to me."

Most references answer this question with The Bells of St. Mary's but if you said The Broadway Melody of 1936, you obviously know your stuff. Full credit for either answer.

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