His biggest complaint was that the movie was made in South Korea.
"How bad were the Academy Awards this year? Did you see?" Trump said. "And the winner is...a movie from South Korea. What the hell was that all about? We've got enough problems with South Korea, with trade. On top of it they give them the best movie of the year. Was it good? I don't know."
Trump started talking about the awards show during the rally, complaining that "Parasite" was named Best Picture, becoming the first non-English-language film to get the top honor.
The audience booed when Trump mentioned the Oscars and then cheered when he offered classic films as an alternative.
"Let's get 'Gone With the Wind,'" he said. "Can we get 'Gone With the Wind' back, please? 'Sunset Boulevard.' So many great movies. The winner is from South Korea. I thought it was best foreign film, right? Best foreign movie. No. Did this ever happen before?"
Neon, the U.S. distributor for the subtitled film, shot back on Twitter: "Understandable. He can't read," with a clip of Trump's comments.
"Parasite" tells the story of how a family of four poor, unemployed people living in a slum basement apartment comically infiltrates a wealthy family residing at a luxurious mansion before things unravel violently and tragically.
Trump also had harsh words for actor Brad Pitt, who won the Oscar for Best Supporting Actor and used his time to comment on the lack of witnesses at Trump's impeachment trial.
"And then you have Brad Pitt," Trump said. "I was never a big fan of his. He got up and said some little wise-guy stuff. He's a little wise guy. He's a little wise guy."
(The Associated Press contributed to this report)