None of the stars involved are being paid for their work, and record company London have agreed to make the album - called Hope - for nothing too.
It's not the first album the charity have made to help kids who have been affected by a war in their country.
In 1995 more than £1m was raised to help children in Bosnia when 20 artists worked together on album called Help.
Meanwhile, the man given the job of rebuilding Iraq has arrived in Baghdad but says he's definitely not there to rule the country.
Retired US general Jay Garner said his team will stay "as long as it takes."
And he said: "The new ruler of Iraq will be an Iraqi."