BRIT-award winner Gabrielle, Scottish singer Lulu and rap artist Ironik will all perform at The Festival for Heroes.
It is hoped the festival in June will raise more than £1m for servicemen and women and their families.
It is being organised by Jack Knowles who runs a social networking site for the armed forces.
The Festival for Heroes will start a week of fundraising events leading up to Armed Forces Day on 27 June.
Young people
The 20-year-old festival director said he felt "a bit nervous, but a bit excited too".
"There's never been a festival of its type - to honour our armed forces."
Mr Knowles has set up a facebook website to help people in the armed forces connect with each other.
He said he was inspired by the example of his grandfather, who served in the army.
Annabelle Fuller from the Royal British Legion, said the concert was aimed at young people.
"You've got guys aged 18 and 19 on the frontline in Afghanistan and Iraq.
"We want to reach out to a young audience and say that people your age are out there, thousands of miles away, so come out to the concert to support them."
Traffic problems
However, some people in Woodstock are worried that the 'Festival for Heroes' event could repeat the travel chaos caused by last year's Game Fair.
The Chief Executive of Blenheim Palace, John Hoy, has said he would do everything he can to prevent traffic problems during a new concert there this summer.
"It's being held on a Saturday and it's a smaller crowd, so there are lots of big differences to reassure people in the community that the traffic management will work," he said.
Blenheim Palace is the only English stately home designated a World Heritage Site.
It includes more than 80 acres of formal gardens.
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