Taylor is Australia’s most successful female motorsport export, having won the Extreme E championship in its inaugural season in 2021.
She was leading the 2024 competition too before it was abruptly halted after its second event.
That success complemented her victory in the Australian Rally Championship in 2016.
Born and raised in Sydney, next year’s March 7-8 event will mark her first appearance at the Race of Champions.
“The Race Of Champions (ROC) is such an iconic event and something I’ve followed for a long time,” Taylor said.
“It’s a huge moment in my career to be invited to join a line-up like this.
“The ROC concept is incredibly cool with the fans in the stadium able to see every bit of action and get closer to the cars and drivers than at any other form of motorsport.
“Rally and Extreme E are all about adapting to new situations quickly, which I think will suit my style of driving and my experience.
“To be able to compete in the Race Of Champions feels surreal and to do it for the first time in front of a home Sydney crowd will be an incredibly special once-in-a-lifetime experience.”
Taylor joins Jamie Whincup among Australia’s driver roster, with two more yet to be confirmed as the host nation enjoys two entries.
Taylor and Whincup will compete across a range of disciplines and host of world-class names at the event.
That includes four-time Formula 1 world champion Sebastian Vettel, who will drive for Germany alongside Alpine World Endurance Championship pilot Mick Schumacher.
Nine-time World Rally Champion Sebastien Loeb will also compete, alongside 11-time X-Games gold medallist Travis Pastrana, seven-time World Rallycross Champion Johan Kristoffersson, and European Rally Champion Hayden Paddon.
“I am excited to be racing against some of the most iconic names in world motorsports, including drivers I’ve looked up to my whole career,” Taylor enthused.
“Sure, ROC is not your traditional style of motorsport, and everyone is having a heap of fun, but, like everyone else out there, I will be racing to win.”
Fredrik Johnsson, Race Of Champions President and Co-Founder, added: “The momentum we have since announcing our 2025 event at Accor Stadium in Sydney is fantastic.
“To be able to follow up our recent announcements with Molly, the first female driver and on top of that, a local girl from Sydney, is fantastic for the fans, who are hopefully starting to get a feel for how big this event is going to be.
“Molly is an amazing talent who has proved herself winning in Extreme E and making huge improvements every season. I think she will be as competitive in this format as any of the girls that we have competing against and often beating many of the men at ROC.
“Molly has probably not received the credit she deserves from the wider public for what she has achieved both in Australian and international motorsport.
Tickets for the event across are available from $49 and can be purchased here.