Irwin rose to international fame in 1996 with his documentary series, The Crocodile Hunter.
He was a highly respected conservationist and world-renowned television personality who was the face behind Australia Zoo, one of Queensland's most iconic tourist destinations.
The adventurous wildlife warrior died while making the documentary, Ocean's Deadliest, after being stabbed in the chest by a stingray barb during underwater filming on the Great Barrier Reef.
The Walk of Fame Committee announced the decision today via a live stream watched by the Irwin family, including Terri, Bindi and Bob Irwin.
Irwin will join the class of 2018 alongside names such as Mark Hamill, Jack Black, Jennifer Lawrence, Sir Richard Branson, and Simon Cowell.
In a statement, Terri Irwin said the family were ecstatic to hear the news.
"Steve has always said that he didn't care if anyone remembered him, as long as they remembered his message," she said.
"I truly believe that this recognition for Steve's achievements will ensure that his message of wildlife conservation is remembered."
Daughter Bindi said she was excited to see her father's work recognised in America.
"Dad changed the world by reaching out to people through their television screens," she said.
He was a regular on US television, where his passionate and animated appearances on late-night talk shows endeared him to millions around the world.
The Irwin family have two years to schedule the unveiling of the five-pointed terrazzo and brass star embedded in the sidewalks along 15 blocks of Hollywood Boulevard and three blocks of Vine Street in Hollywood.
'True Queensland star'
Currently in Los Angeles, Queensland Premier Annastacia Palaszczuk has taken to Twitter to show her approval of the "fitting tribute".
"In every sense, he remains a true Queensland star," she said.
Father Bob Irwin said hearing the news his late son would be honoured in America made him "very proud".
"He [Steve] did a lot of work over there, and I think it's a measure of what Steve achieved while he was working in America," he said.
"He was always very passionate and dedicated towards the animals and he was one of those people who was able to get the message across to the general public."
Mr Irwin said he believed the danger element in his son's productions appealed to audiences around the world.
"We were two peas out of the same pod I think, both of us thrived on the adrenalin rush from pushing the envelope as far as you could go," he said.
"It's a part of what we did ... and back in our time, workplace health and safety wasn't something that we took a lot of notice of - of course in this day and age it's very important and I wouldn't recommend to anyone to go back to the way we used to do things in the early days."