This award is for an outstanding gospel recorded performance, of one or more songs, new or old, first commercially released or showed significant chart action during the eligibility period. Recorded performance may be vocal, instrumental, or a combination of both. The award goes to the featured artist(s), producer, and label.
The nominees for Gospel Recorded Performance Of The Year for 2005 are:
| Song Title links to audio | Artist(s) links to artist(s) | Label links to label |
| A Living Prayer | Alison Krauss & Union Station | Rounder |
| Gospel In Black & White | Marty Raybon & Full Circle | Synchoro |
| I’ll Be No Stranger There | Paul Williams & The Victory Trio | Rebel |
| I Want To Live Beyond The Grave | Mountain Heart | Skaggs Family |
| Praise His Name | Doyle Lawson & Quicksilver | Crossroads |
