Nutkhut, which is best known for its hit show Bollywood Steps, will showcase an innovative dance routine as part of a reception for Britain's Indian community ahead of a state visit by India's President, Pratibha Patil.
Simmy Gupta, co-founder and artistic director of Nutkhut, told PA: "It's a real privilege and honour to be asked to perform in the palace. We're British, we're Asian, we are contemporary, we also know our roots.
"We're also sexy and up to date and hope to represent British Asians today, that's why we've been invited."
Other high-profile guests will include cricketer Monty Panesar, writer and comedian Meera Syal and Channel 4 news presenter Krishnan Guru-Murthy.