Known as the Royal Family of Reggae, Morgan Heritage, is a reggae band comprised of five children of reggae artist Denroy Morgan.
Groundation are a California-based reggae band who blend elements of jazz, funk, salsa, fusion and dub.
Raggamuffin New Zealand festival director Jackie Sanders said bringing Damian Marley back for Raggamuffin 2014 took the festival back to its reggae roots.
"It will be particularly special to have Damian performing in New Zealand in the week of his father's birthday and marking 35 years since Bob Marley's historic performance at Western Springs which really gave birth to the reggae movement in this country and was the inspiration for the movie Mt Zion.
"This will be the seventh Raggamuffin Festival in New Zealand and we're very excited about the line-up this year with such strong international reggae headliners," she said.
Also featuring at Raggamuffin 2014 is Hawaii reggae band Rebel SoulJahz and leading New Zealand reggae acts including Tiki Taane, House of Shem, Three Houses Down, Soljah and Sons of Zion.
More international and New Zealand artists will be announced later this year bringing the total line-up to 20 bands and DJs performing at the two-day festival.
Events & Venues Rotorua general manager Peter McLeod said it was an exciting line-up and having Damian Marley at the festival was a huge coup.
"We've also got Shaggy returning to headline the Friday night where he'll be playing on the number one stage. This will be a big boost for the Friday night with such a big act on show."
Mr McLeod said ticket prices were also very good with long term payment options available as well as early bird specials.
"The festival is a great asset for Rotorua and being scheduled between holiday weekends is an additional benefit," he said.
Raggamuffin 2014 is also supporting the charity Y for Youth, with a donation from every ticket sold going to help support New Zealand youth organisations.
Tickets for the festival will go on sale from September 24 and are available through Ticketmaster by calling (0800) 111 999, or visiting www.ticketmaster.co.nz.
Visit www.raggamuffin.co.nz for ticket specials and time payment options.