The town council is working with the Defence School of Transport, based at nearby Leconfield, to show support to servicemen and women and veterans.
Events will take place in Saturday Market on Sunday, July 4, after the Ministry of Defence provided a grant of 9,200.
Former town mayor, Coun David Elvidge, chairman of the event organisers, said: "This will be an opportunity for local people to gain a greater understanding of the Defence School of Transport and how it trains our young men and women to drive in often hazardous conditions around the world.
"There will also be a greater promotion of our local cadets with the Sea Cadets, Army Cadets and Air Training Corps being fully represented. There will also be military bands, military exhibitions music and dancing."
Last year's event featured a parade and events commemorating major conflicts, culminating in a Last Night at the Proms concert with the 150th (Yorkshire) Transport Regiment Royal Logistic Corps (Volunteers).