The programme's host Jon Stewart along with 125 staff members will host week-long coverage of the convention at the ImaginOn: The Joe & Joan Martin Centre from September 2 to September 7 in Charlotte, North Carolina, which will air at 11pm ET/PT on Comedy Central.
The Daily Show's executive producer Rory Albanese said in a statement: "We are incredibly excited to spend a week in the beautiful city of Charlotte.
"And to the good people of North Carolina, for their southern hospitality in hosting 125 smart-aleck New Yorkers, we offer in advance our thanks, but most of all, our apologies. Honestly, we didn't mean to break that, and we promise we'll pay for it."
This will be the fourth Democratic National Convention the satirical news programme has covered since 2000.
Last year, Stewart drew criticism from Celebrity Apprentice star Donald Trump for what Trump called a "very, very racist rant about Herman Cain", a former Republican presidential candidate who was accused of sexual harassment and adultery.
Watch a video clip of The Daily Show below (US only):
|The Daily Show with Jon Stewart||Mon - Thurs 11p / 10c|