Prince Harry and Meghan Markle will marry at St George's Chapel, Windsor Castle, next May, Kensington Palace has said.
The Royal Family will pay for the wedding, including the service, music, flowers and the reception.
Ms Markle, 36, a protestant, will be baptised and confirmed before the wedding, the palace added.
A spokesman for the prince said the pair would make sure the wedding "reflects who they are as a couple".
Prince Harry's communications secretary Jason Knauf described Windsor as a "very special place" for the couple, saying they had spent time there together since meeting in July 2016.
He said they would carry out their first official engagement together in Nottingham on Friday.
He added the US actress also intends to become a British citizen and will work towards it in the coming years.
St George's Chapel was the venue for a service of prayer and dedication after Harry's father, the Prince of Wales, married the Duchess of Cornwall at the Windsor Guildhall in 2005.
It was also chosen for the wedding of Harry's cousin, Peter Phillips, and Autumn Kelly in 2008, and the Earl and Countess of Wessex in 1999.
Harry, who is fifth in line to the throne, and Ms Markle announced their engagement on Monday.
Mr Knauf said it was "an incredibly happy day" for the couple and they were "overwhelmed by support from the UK and around the world".
Their 16-month relationship began when they met on a blind date in London arranged by a mutual friend.
The couple gave their first joint TV interview to the BBC's Mishal Husain on Monday – revealing the proposal came as they made roast chicken at home earlier this month.