Community leaders hope to bring together people from all walks of life at the Burngreave Hullabaloo event at Abbeyfield Park on Saturday, September 3.
The event has been organised amid concerns that hate crime incidents could be on the rise following the Brexit vote in June.
Just last month South Yorkshire Police urged people who have been targeted to report crimes to them amid claims that fearful victims were refusing to come forward.
It was also revealed that hate crime incidents reported to a national police portal were five times the typical weekly level.
Burngreave community leaders have teamed up with the Hope Not Hate organisation - which aims to ‘build community resilience against extremism’ - to host the Hullabaloo event.
Highfield resident Dale Le Fevre, a volunteer for Hope Not Hate, said: “We have seen nationally a rise in reports of hate crimes since Brexit so now is the time more than ever that we need to work together as communities.
“We don’t want to see people from different cultures isolating themselves from the communities they live in.
“We want to encourage everyone from all backgrounds to get active in their neighbourhood and take part.
“This will help to break down a lot of barriers.”
The free family fun day will be held from noon to 7pm and includes a range of stalls, kids’ activities, plus hot and cold food.
Mr Le Fevre added: “It should be a really great day and I’m sure everyone who comes will have a great time. “If you are available on that day please feel free to come along and join in.”