The Karnataka State Film Awards 1996–97, presented by Government of Karnataka, to felicitate the best of Kannada Cinema released in the year 1996.
A committee headed by G. V. Iyer was appointed to evaluate the awards.
| Name of Award | Film | Producer | Director | |
|---|---|---|---|---|
| First Best Film | America America | G. Nandakumar | Nagathihalli Chandrashekar | |
| Second Best Film | Nagamandala | Srihari L. Khoday | T. S. Nagabharana | |
| Third Best Film | Nagareeka | Saraswathi Gopal Jois | Y. Nanjundappa | |
| Best Film Of Social Concern | Karadipura | Rajalakshmi Ramachandrappa | Baraguru Ramachandrappa | |
| Best Children Film | Vyuha | |||
| Best Regional Film | Bogsane (Konkani language) |