Camp Bestival, fronted by former Radio 1 DJ Rob da Bank, will be held at Weston Park in August.
It will be a sister event to the existing Camp Bestival which attracts up to 10,000 visitors a year at Lulworth Castle in Dorset.
Bestival, which has attracted top acts including Blondie, Chuck Berry and Madness, will evoke memories of the V Festival which was held at Weston Park until 2018.
The event will run from August 18-21, following the Dorset festival which will be held in July.
The festival is known for its activities and entertainment for children.
Rob da Bank, who is organising the show with his wife Josie, said Weston Park was the ideal location for bringing the festival to the Midlands.
"Josie and I couldn’t be prouder or more delighted to have finally found a site that's not only worthy of a second Camp Bestival, but is also exquisitely beautiful," he said.
"Weston Park has all the elements we love from magical woodlands and oodles of green fields to lakes and a historic stately home backdrop."
He said demand had been so great that it was decided to bring a second festival to the West Midlands.
The music line-up would take in pop, rap, rock, dance, dub skiffle and swing, spread across a number of different stages, he said.
He added that as well as the music, there would be theatre, shows, wellbeing workshops, circus spectacles, sideshow commotions, comedy, as well as food and drink.
There would be a range of camping options, including campervans and caravans, he added.
Tickets for Camp Bestival Shropshire will be on sale early November, with the full line-up announced later this year.