The Neo-soul singer has landed a nomination in the Best R&B Performance category for 'All I Need', alongside the R&B megastar's 'Black Parade', and she is still not over receiving a nod in the same list as the 'Crazy in Love' hitmaker.
Speaking to the Daily Star newspaper's Wired column, Mahalia said: "The one sentence that keeps going through my brain is that if Beyonce watches, she will hear my name alongside hers - that is crazy.
"Just thinking about that to me is insane - the thought that we are on the same list, and that she might hear my name is astonishing to me. I cannot believe that!"
The 'Jealous' singer also spilled that she "cried for about an hour" when she found out about her nomination for the March 14 ceremony, which also left her family "speechless".
She continued: "When I found out, I could not believe it. I have a family group WhatsApp chat and you can do that thing where you group call, so I called all of them.
"I just told them and it was so funny, as they were silent and it was just a bunch of expressions - they were speechless.
"It's huge, really huge, I cried for about an hour.
"Knowing that if everything stops now I could say: 'Mummy was nominated for a Grammy' - that's a really nice feeling."
Mahalia recently insisted her family keep her grounded.
The Jamaican-British star will always remain humble because her loved ones won't let her get too big for her boots.
Mahalia - who released her acclaimed debut studio album, 'Love and Compromise', in 2019 - also admitted she prefers to be in their company over people in the music industry.
The 22-year-old star said: "All of my friends, all my family, all the people that I surround myself with are all people that I have known my whole life or that I have met in really natural ways.
"I guess even though I am an artist and I got the odd gig, or the odd event, I really don't surround myself with people in the biz.
"So that means I've just stayed me.
"I really do love and care about all the regulars in my life because apart from the music world that is my whole life.
"Both of my best friends have babies, they take their dogs for a walk, have jobs, and just regular lives."