Troops will set off at 1pm on Saturday marching from King’s Stables Road to Princes Street Gardens.
The day’s events will include a fly-past from a Typhoon squadron, which will then make its way to events in Glasgow and Dundee.
Crowds will also be entertained by a 1940s-style dance troupe, the Kennedy Cupcakes, as well as Highland dancers, majorettes and a jazz band.
Edinburgh was the main host city for the national event last year, with Plymouth taking over the mantle this year.
However, marches are planned across Scotland, and in Dundee the 1st Battalion Scots Guards will receive the Freedom of the City.
The event received £80,000 of council funding towards costs last year but ended up going over budget, eventually costing £148,000. This year the council has pledged £9000 for the event, which will be considerably smaller than last year’s.
Lord Provost Donald Wilson said: “We are looking forward to welcoming thousands of serving personnel and veterans to Princes Street Gardens for a fun, family-friendly event to celebrate these men and women’s bravery and dedication to duty.”
Wing Commander Roddy Dennis, officer commanding 6 Squadron at RAF Leuchars said: “The Royal Air Force has always enjoyed close links with the people of Scotland and it is very heartening to see how well supported Armed Forces Day continues to be.
“On behalf of the RAF, 6 Squadron will recognise this support on Armed Forces Day by flying over three of Scotland’s finest cities – Glasgow, Edinburgh and Dundee.”