The "Hunger Games" star will be paraded through Harvard Square and then awarded a golden pudding pot following a celebratory roast by the troupe on Friday. The student group will then perform a preview of its latest show, "Mean Ghouls."
Hasty Pudding says it picked Banks because she's a role model for women in Hollywood as a director, producer and writer.
The more than 200-year-old troupe, which is considered the nation's oldest collegiate theatrical organization, has made strides in recent years to better represent women in its productions.
Last year was the first in which women were allowed in the cast. Organizers say this year's performance boasts a majority female cast, a female writer and female producers.
The troupe has bestowed the Woman of the Year award since 1951.
Previous winners include Ella Fitzgerald, Meryl Streep and Halle Berry. This year's Man of the Year has not yet been announced.
A native of Pittsfield, Massachusetts, the 45-year-old Banks has received three Emmy nominations for roles on the television shows "Modern Family" and "30 Rock."
She also directed 2015's "Pitch Perfect 2" and produced, wrote, directed and appeared in last year's reboot of "Charlie's Angels."