Madeley Town Council is organising the event, at Russell Green, near the war memorial, on Tuesday, August 9.
“This should be a great day – we hope as many people as possible will come along and enjoy themselves,” said Helena Morgan, Mayor of the council.
“We are providing free bouncy castles, hula-hooping, stilt walking and big garden games.
“Residents just need to bring a blanket, a picnic and we will even supply the free ice creams!” Helena added.
The picnic will be held from 11am until 1pm.