The fun will take place between 4pm and 8pm at Phoenix Park, off Dudley Road in Blakenhall.
Hosted by The Elias Mattu Foundation, the event will feature entertainment by Lehmber Hussainpuri, DJ Mac, Gaggi Dhillon, Wolvo Jatti, Lucky Rai, Dhol Frequency and Ultimate Bhangra.
Following the turning on of the lights at 7.30pm, there will be a spectacular fireworks display.
Councillor Steve Evans, City of Wolverhampton Council's cabinet member with responsibility for events said: “After we were forced to cancel last year’s event due to the pandemic, it will be brilliant to see our city’s free Diwali celebration back in 2021.
“Everyone is welcome, this will be a fantastic event for all the family, featuring top quality entertainment and a fantastic firework display and we encourage everyone to come along and celebrate this important event in the city’s calendar.”
The event is supported by the Indian Multicultural Society, Shri Krishan Mandir, Gurudwara Sikh Council, and Gujrati Association.