The museum successfully applied to the National Lottery's
Awards For All Scheme to help celebrate the bi-centenary of the death of the Cock (Denmark) Street staymaker who went on to world fame in the late 1700s.
He wrote three best-selling works of the 18th Century – Common Sense, Rights Of Man and The Age Of Reason and was a major influence in modern society.
The festival starts on November 7 and will be opened by TV and radio comedian Mark Steel.
There will be many events throughout the festival, including a debate on whether Paine was a good man or not, 18th Century music and food, while a film and CD is being made for the event.
Museum manager Basil Abbott said: "Diss has a good record for cultural projects.
"Having celebrated John Skelton and John Betjeman, Tom Paine was the obvious next one."
For further information, call the museum, 01379 650618.