The iconic band, which exploded onto the music scene in the early and mid-2000s, will be the Sunday headliners for the annual festival at Eastnor Castle Deer Park.
A spokesperson for LakeFest said the performance would be one for the history books.
Fans of Busted will be able to hear the group’s biggest hits, including Air Hostess, What I Go to School For, Crashed the Wedding and Year 3000.
READ MORE- Cars under water on A449 as Ledbury battered by floods
READ MORE- Football photographer Matthew Cale breached sexual harm rule
Excited festival regulars took to Facebook to react to the announcement.
One said: “There are some great headliners this year, my wife’s going to be delighted with this one.”
Another woman added: “This has just made my day, I can not wait for Lakefest.”
And another said the Busted announcement was the best news ever, adding the announcement had resulted in her having a very happy start to the new year.
This year’s LakeFest will take place between Thursday and Sunday, August 6 and 10.
Kicking things off, 1980s rock icons Echo and the Bunnymen will be headlining the opening night on Thursday and will be performing their iconic hits like The Killing Moon and Lips Like Sugar.
British electronic music duo Groove Armada will be headlining the Friday evening leg of the festival, with fans able to enjoy songs such as Superstylin and I See You, Baby, during the DJ set.
Indie rock band Reverend and the Makers will be hitting the LakeFest stage on Saturday evening with tunes such as Heavyweight Champion of the World and Open Your Window.
The band have recently been back in the headlines for their Christmas single, Late Night Phone Call, which they released to support Samaritans and the work the charity does for anyone struggling over the festive season.
The single was aiming for Christmas number 1 but peaked at number 12 on Boxing Day.
Lakefest was first held in 2012, with Eastnor Castle Deer Park being the festival’s home since 2016.
The four-day festival has seen some of the biggest acts in music come to Eastnor Castle Deer Park, with last year seeing X Factor legend Olly Murs hit the main Abbey Stage for the Sunday show.
Lakefest organisers have said they were planning for the festival to be even bigger this year.