The Lord of the Rings actor and his friend Zach Cowie, who play under the stage name Wooden Wisdom, have never performed at an event outside of the US before now.
The festival takes place at the 400-year-old Old Bushmills whiskey distillery on the Causeway Coast. Snow Patrol have been confirmed as the headliners.
Songwriters Foy Vance and Iain Archer will also perform at the two-day event, which takes place on June 20-21.
Tickets are not on general sale, but can be won via a Facebook competition.
Colum Egan, Master Distiller at the Distillery said: "I am really looking forward to welcoming Elijah to the Old Bushmills Distillery.
"He is a great actor and DJ and I have already seen him perform at a fantastic Bushmills party in Los Angeles. The lineup for Bushmills Live just keeps getting better and I now can't wait for 20th June!"
> Elijah Wood: 'The Hobbit is going to be a surprise'
Watch Digital Spy's interview with Elijah Wood for Happy Feet 2 below: