Publishers Weekly lists their favorite books of 2005. (Via Children's Bookshelf)
Notable titles I've enjoyed this year as well include Victoria Chess' The Costume Party, Allen Say's Kamishibai Man (recently reviewed by Camille at Book Moot), M.T. Anderson's hilarious Whales on Stilts! (illustrated by Kurt Cyrus), Sally Gardner's I, Coriander, and Philip Pullman's The Scarecrow and his Servant.
Speaking of I, Coriander...Children's Bookshelf reports that the indefatigable Dakota Fanning will voice the title role in an animated film to be written and directed by Henry Selick.