This comes after Carrasco, 32, missed three months of the 2019 regular season as he battled chronic myeloid leukemia.
Following his treatments, Carrasco began a rehabilitation assignment in the minor leagues in August and made four relief appearances combined between Akron and Triple-A Columbus.
He returned active to the major league roster on September 1. He made 11 relief appearances overall during his September comeback, highlighted by a 2.2-scoreless-inning outing at home on September 22 against Philadelphia in. During that game he allowed one hit with three strikeouts en route to his sixth victory of the season.
Atlanta Braves third baseman Josh Donaldson was the recipient of the award for the National League.
MLB has presented the award annually since 2005. Carrasco is the second Indians player to claim the AL Comeback Player of the Year Award, joining pitcher Cliff Lee who received the award in 2008.