The Picnic in the Park event takes place on Friday 15 August, with residents invited to bring a picnic and a blanket to join in the celebrations from 11am to 3pm.
Visitors can enjoy a range of vintage garden games at the event, including skittles and a coconut shy, while the council's Play Rangers promise to bring a host of fun and games to proceedings, including a scavenger hunt, a sensory tent and a bubble factory.
With music from the park's bandstand and 30 picnic tables set to be laid out for visitors, the Picnic in the Park aims to recreate the atmosphere of VJ Day in 1945, when Japan's surrender on 15 August brought the Second World War to an end.
Cllr Maggie O'Rourke, Rugby Borough Council's portfolio holder for partnerships and wellbeing, said: "VJ Day brought one of the darkest chapters of our history to a close, prompting spontaneous celebrations across the country, from street parties to parades.
"The Picnic in the Park event aims to capture that community spirit and sense of celebration, while also remembering the sacrifices made by so many during six years of conflict."
Later on VJ Day, the Mayor of Rugby - Cllr Barbara Brown - attends a Sunset Service at the Hillmorton War Memorial.
Organised by local branches of the Royal British Legion and led by the Reverend Steve Gold, of St John the Baptist Church, the service starts at 8.45pm and includes the lighting of a beacon and a Lamp of Peace as the sun sets.
Residents who attend the service have been invited to bring a tea-light to light and leave at the War Memorial at the end of the service.
Cllr Brown said: "While VJ Day was a time for celebration in 1945, it remains a day to remember those who made the ultimate sacrifice fighting for our freedom during the Second World War.
"I'm honoured to have been invited to the Royal British Legion's Sunset Service and look forward to joining the community in a quiet moment of remembrance."