During the Sunday night award show, the 51-year-old comedian invited the accountants from PricewaterhouseCooper, who calculate the Academy voting results, to join him on stage.
Instead of actual employees, three young Asian children dressed in suits and carrying briefcases were brought on stage and introduced by Rock as Ming Zu, Bao Ling and David Moskowitz.
"If anybody's upset about that joke, just tweet about it on your phone that was also made by these kids," he said. The joke is believed to be a veiled reference to Asia child labor laws.
Following the sketch, many celebrities shared their distaste on Twitter.
"Seriously though, when is this going to change?!? Tired of it being 'cool' and 'ok' to bash Asians smh," Charlotte Hornets basketball pro Jeremy Lin wrote.
"To parade little kids on stage with no speaking lines merely to be the butt of a racist joke is reductive and gross. Antithesis of progress," Fresh Off the Boat actress Constance Wu tweeted.
To parade little kids on stage w/no speaking lines merely to be the butt of a racist joke is reductive & gross. Antithesis of progress.— Constance Wu (@ConstanceWu) February 29, 2016
Hawaii Five-0 star Daniel Dae Kim was upset that the "first reference to any ethnicity other than 'Black' at the Oscars; 30 minutes in someone mentions 'pho,'" adding "I thought diversity was more than that."
Meanwhile, Jeffrey Wright was upset that Rock made a "half-a**ed Asian joke" while he "preached about diversity."
Kat Dennings called out the ceremony for giving "45 seconds" of air time to the controversial skit, but cut off filmmaker Sharmeen Obaid-Chinoy as she spoke about honor killings while accepting the award for Best Documentary -- Short Subject.
They played off Sharmeen Obaid-Chinoy talking about honor killings but they gave Chris Rock 45 seconds for that bit??— Kat Dennings (@OfficialKat) February 29, 2016
ET has reached out to Rock's rep for a comment about the joke and growing backlash.
Despite the controversy, the 88th Academy Awards were definitely memorable. Watch the video below to see our best and worst moments from the Oscars.