The announcement was made Wednesday alongside a teaser trailer for the special live event that features the Saturday Night Live alums portraying broadcasting characters named Cord Hosenbeck and Tish Cattigan.
Ferrell, who is seen with a bald head and a beard, becomes upset in the clip when a marching band plays a funny entrance song as opposed to the loud and fun one Cattigan received.
"Cord and Tish are parade legends, beloved the world over, and it was such a coup for us to steal them away to Amazon Prime Video for their first-ever live-streamed parade," said head of unscripted Amazon Originals Heather Schuster in a statement.
"We're excited to bring Prime members this unprecedented live event from these veteran parade commentators," she continued.
The Rose Parade, which is also known as the Tournament of Roses Parade, is a celebration held each year on New Year's Day in Pasadena, Calif.
The live stream will begin at 8 a.m. PT on New Year's Day on Prime Video.