The other big names are attached Spielberg Oscar-winning actress Nicole Kidman, Oscar winner Christophe Waltz, Japanese director Naomi Kawase, Scottish director Lynne Ramsay, French actor Daniel Auteuil and Romanian director Cristian Mungiu.
The jury awarded the coveted Palme d'Or to one of the 19 films in competition at this year's festival, which runs from 15 to 26 May.
"Vidya Balan in cannes jury ... amazing ..." wrote the director Anurag Kashyap.
Director Shekhar Kapur and actress Sharmila Tagore have previously been part of the Cannes jury.
Cannes has invited India this year to celebrate 100 years of cinema in the country.
Apart from Balan, actress Nandita Das is also a part of an independent jury for short films.
The festival will open on May 15 with 'The Great Gatsby', which also has superstar Amitabh Bachchan in a cameo. The actor will attend the opening ceremony, while the festival has extended a special invitation to her daughter-in-law Aishwarya Rai, a regular at the Cannes red carpet.
This year, four Indian films have been selected in the categories of non-competition in Cannes.
'Bombay Talkies' anthology film of four directors Kashyap, Dibakar Banerjee, Zoya Akhtar and Karan Johar - have a gala screening at the festival.
Kashyap also screen his "ugly" in Managing Fortnight festival where previously showed his two plays revenge 'Gangs of Wasseypur'.
Dabba '(Lunchbox) and "Monsoon Shootout', co-produced by Kashyap, have been selected for Critics' Week at Cannes and the midnight screening sections, respectively.