Diane Keaton's Los Angeles Estate Returns to Market for $23 Million

Diane Keaton's Los Angeles estate is back on the market ... and the late Oscar winner's passion project can now be yours for just south of $23 million ... TMZ has learned.

The sprawling 9,219-square-foot property returned to the market Friday with a reduced asking price. The estate features 5 bedrooms and 8 bathrooms and reflects the design eye that made Diane almost as famous for her homes as her Hollywood career.

The home was inspired by Diane's childhood love of "The Three Little Pigs" ... an influence perhaps best seen in the 75,000 hand-selected 18th-century bricks sourced from Chicago that form the property's foundation.

Diane considered the kitchen the "heartbeat of the house," and it's easy to see why. The massive space features a custom-built island, chicken-wire cabinetry, and pendant lights cleverly repurposed from a former chicken coop.

The estate originally hit the market for $28.9 million before seeing a series of price cuts. It was later pulled from the market altogether.

Luxury real estate broker Josh Flagg, who represents the listing, tells TMZ ... "Diane possessed one of the great design eyes of our generation."

He adds ... "What always amazed me was her ability to see potential where others saw limitations. She had an almost oracle-like eye for architecture, proportion, and design. It is a talent that is exceedingly rare."