The fun will take place between 5pm and 9pm at the venue off Dudley Road in Blakenhall.
Hosted by Mr Rajiv Sharma, the event will feature music from Punjabi singer Pargan Bhandal-Rajj Ke Des DJ, and Atma Ram and Pamma Bhangra Group.
Following the turning on of the lights at 8.30pm there will be a spectacular fireworks display.
Councillor Harman Banger, City of Wolverhampton Council Cabinet Member for City Economy said: "This is a fantastic event for all the family, featuring top quality entertainment and a fantastic fireworks display."
The event is supported by the Indian Multicultural Society, Shri Krishan Mandir and Gurudwara Sikh Council, and Gujrati Association.