Sir Terry, who died in January 2016 aged 77, was life president of Children in Need, with which he had been involved for more than 30 years.
The concert will feature archive material such as one of the popular Radio 2 Janet and John stories which Sir Terry frequently read on his Radio 2 Breakfast Show. accompanied by drawings by Horrid Henry illustrator Tony Ross.
BBC Children In Need vice chairman and controller of Radio 2 Bob Shennan said:
Sir Terry was one of the nation's best-loved broadcasters and it's a privilege to be celebrating his life with BBC Children In Need Rocks. The night promises to be full of fun for music fans around the country.The concert is on 1st November. Tickets are available from the Royal Albert Hall and agencies.