The Olympic gold medalist will participate alongside grand marshal Goofy in the Dec. 6 parade.
Parade executive director Ed Bautista said Yamaguchi was chosen for her involvement in winter sports.
Yamaguchi was born in Hayward, attended Mission San Jose High School in Fremont and later transferred to Willow Glen High School in San Jose. She is the 1992 Olympic Champion in women's singles.
"What better way to honor the winter Olympians in Vancouver than to have our very own gold medalist and a Bay Area person to boot as the honorary grand marshal?" Bautista said.
This year's parade will showcase approximately 90 entries with 5,000 marchers, including giant soaring helium balloons, top marching bands, colorful floats, drill teams, equestrians, clowns, and guest celebrities.
The parade will begin at 8:30 a.m. on Santa Clara Street and Delmas Avenue, near the HP Pavilion, proceeding east on Santa Clara Street. It will turn right on Market Street marching south past Plaza De Cesar Chavez and ending at San Carlos Street.