The glamour model and reality TV star was billed by Paxman as a woman who knew a lot about "boob jobs".
Price was taking part in a debate about the recent PIP implants scandal and suggested that the age of consent for women having breast surgery should be raised.
The I'm a Celebrity star was joined in the debate by Anne Milton MP, feminist author Naomi Wolf and a group of women who have had PIP implants.
Price said that she did not have PIP implants, but admitted that she wasn't surprised by the health scare, claiming that people should always be aware of the risks when having any kind of surgery.
Price's appearance caused a stir on Twitter and many comedians started cracking jokes about her appearance on the flagship BBC news programme.
Comedy account @KatieWeasel tweeted: "Katie Price is on Newsnight tonight. In other news, Kerry Katona is named Middle East peace envoy."
Stand-up Jack Whitehall wrote: "Now Katie Price has done Newsnight I think it's only fair Jeremy Paxman appears on the next series of Signed by Katie Price."
> Only Way Is Essex Maria Fowler: 'I don't have PIP breast implants'