The 58-year-old Welsh-born singer appears in the final episode of the show's five-day run and performs an impromptu duet of her classic 'Holding Out for a Hero' with Carmel McQueen (Gemma Merna).
With Carmel behind bars, the songstress appears in a dream sequence and offers some words of wisdom about men, before breaking into song.
Producer Bryan Kirkwood said of the signing: "It's a real coup for Hollyoaks Later to have Bonnie. We're delighted that she's agreed to take part in what will be a hilarious and entertaining sequence."
He added: "Hollyoaks Later is a cocktail of drama, comedy and slightly absurd fantasy which I’m sure viewers will love!"
Tyler's episode will air on Friday, October 2 at 10pm on E4.
This year's edition of Later will also feature a tragic skydive stunt in which one Hollyoaks star will plunge to their death when their sabotaged parachute fails to open.
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