Madame Tussaud has immortalised the royal family
Anthony Tussaud will unveil the English Heritage plaque at the north-west London house where she lived from 1838 to 1839.
He will be joined for the occasion by a wax figure of Madame Tussaud, a self-portrait completed only eight years before her death aged 89.
Madame Tussaud arrived in the UK from France in 1802 and travelled around Britain for 33 years with her touring exhibition of waxworks before settling in London on 1835.
After her death in 1850 her sons and grandsons kept the business going and it was moved to its present site in London in 1884.
Direct descendants remained involved until 1967.
Juliet Simpkins, head of corporate communications, The Tussaud's Group said: "We are delighted that English Heritage has recognised this extraordinary woman in this way.
"As an untiring showman and artist in wax she founded one of the most famous and enduring visitor attractions in the world."
Ms Simpkins added that the waxwork maker would be "proud to know that the exhibition that still bears her name has expanded to prime locations in Amsterdam, Hong Kong, Las Vegas and New York".
Madame Tussaud was born Marie Grosholtz in 1761, two months after her father was killed in the Franco-Prussian war.
Luminaries
She learned her skills from her mother's employer, Philippe Curtius, who was a doctor, with a talent for wax modelling.
Dr Curtius became her mentor and guardian, and he introduced the young Marie to some of the leading luminaries of the time.
By the time she was 17, she modelled the famous writer and philosopher Francoise Voltaire, and followed that up with a portrait of American statesman Benjamin Franklin.
Both figures are still on display at Madame Tussaud's today.
Death masks
Her work at Curtius's successful Paris wax exhibition led to an invitation to the court of Louis XVI and his Queen, Marie Antoinette.
She lived at Versailles for nine years supervising the artistic education of the king's sister, but returned to Paris as France was on the brink of revolution.
The waxwork-maker then faced the grim task of making death masks of executed nobles, many of whom were former friends form her time at court - including the king and queen.
Celebrities
Some of these death masks survive and can still be seen at Madame Tussaud's.
After the end of the revolution, she took her exhibition on tour and never returned to France again.
Her works were a source of fascination for those who saw them, as it was their only chance to see what the celebrities of the era really looked like.
The exhibition became permanently based in London in 1835, moving to its present site in Marylebone Road in 1884.