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Trump, who has frequently engaged in inflammatory anti-Muslim rhetoric, will host the event in the State Dining Room.
He did not hold a similar event in his first year in office, in a break with past presidents.
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Millions of devout Muslims observe the holy fasting month of Ramadan, which is slated to end on June 14 this year.
From sunrise onwards, they abstain from food and drink, breaking their fast at sunset.
“There will be roughly, I believe, about 30 to 40 different attendees,” said White House press secretary Sarah Sanders.
Iftar dinners have been a regular feature on the White House calendar, along with prayer breakfasts, Passover Seders and similar events.
Several American Muslim groups have already said they will not participate in Wednesday’s iftar.
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