The service will coincide with a day of celebration for the journalist being held in his hometown of Rochester in the American state of New Hampshire.
Our Lady of the Holy Rosary Parish in Rochester is holding a mass in his memory at the same time as the service in Ireland.
The Foley family can trace its roots back to Waterford, and the event in the city is being organised by the National Union of Journalists.
James Foley, also known as Jim, was the first American to be killed by IS when he was beheaded by the terrorists in August.
He had often spoken of his Christian faith and, in the final letter he sent to his parents from his cell, he said: "I know you are thinking of me and praying for me. And I am so thankful. I feel you all especially when I pray. I pray for you to stay strong and to believe. I really feel I can touch you even in this darkness when I pray."
The service at Waterford Cathedral starts at 6.15pm on what would have been Mr Foley's 41st birthday.