Dressed as Admiral General Aladeen, "The Dictator" from his upcoming movie, he was accompanied by two women in "army" uniforms and red berets. He carried the ashes in a cremation urn with an image of Kim Jong-il on the outside.
Baron Cohen stepped over to talk to E! red-carpet host Seacrest, he threw the ashes all over Seacrest's tux.
"I'm wearing John Galliano, but the socks are K-Mart," he told Seacrest before ashing him. He said he was thrilled to bring his "dear friend and tennis doubles partner Kim Jong-il to the Oscars."
Security led Baron Cohen away as he said to Seacrest: "Now if somebody asks who you are wearing, you will say Kim Jong-il."
Seacrest was not happy; he kind of flipped out as he brushed off his tuxedo. Tina Fey thought it was funny, telling Seacrest: "You're a victim of comedy."
Baron Cohen continued to dump ashes on the carpet as he made his way into the Hollywood and Highland Center.