"We're up against Kendrick, who made a phenomenal album. If we win a Grammy for Best Rap Album, hip-hop is going to be heated (angry)," he said.
However, Macklemore admits they are facing some tough competition, including fellow break-out star Lamar with his record Good Kid, MAAD City.
"In terms of that category, I think it should go to Kendrick. He's family. Tde (Record label Top Dawg Entertainment) is family, and I understand why hip-hop would feel like Kendrick got robbed if he didn't win," he added.
Macklemore team and Lamar will face off against Drake (Nothing Was The Same), Jay Z (Magna Carta Holy Grail) and Kanye West (Yeezus) in the Best Rap Album category.
The winners will be revealed during the ceremony in Los Angeles on 26 January.