The couple, who wed in February 2011, attended the Vanity Fair Oscar party on Sunday. Kayte, 32, hid her blossoming baby bump under a little black dress. An insider told US Weekly, that her husband was spotted rubbing her tummy during the night.
Kelsey, 59, and Kayte already have a 19-month-old daughter Faith Evaneline Elisa. The actor is also a father to four children from previous relationships: Spencer, 30, Greer, 22, Mason, 12 and nine-year-old Jude.
The road to motherhood hasn’t been easy for Kayte. She tragically endured a miscarriage in 2010, and lost Faith's twin midway through her pregnancy.
Becoming a parent after so much heartache made her daughter's arrival all the sweeter.
"I don't take it for granted," Kayte told People in 2012. "It's such a miracle and a gift to bring a baby into the world."
Grandfather-of-one Kelsey admitted they were keen to have more children.
"I think we'll have at least two more, if not three or four," he told Access Hollywood Live in 2012. "I think it's a great way to live a life."