Naholo broke his right leg in the 2015 champions' season-opening loss to the Auckland Blues on Feb. 26.
The 24-year-old broke the same leg last year, which had threatened to scupper his World Cup chances, though he sought traditional treatment in his native Fiji and made Steve Hansen's squad for the tournament in England.
"He'll be all go," Highlanders coach Jamie Joseph told Fairfax Media. "It's increased the morale of our team, having one of our All Blacks back to play. You only have to watch his game to see what he can bring to a team.
"What he did last year was set the competition alight. We certainly don't expect that for a few games.
"I think he's like every player, we just expect them to do their own job. Everyone's got a role to do and if he does that well, that's all we're expecting."
Naholo, who played club rugby in Dunedin last week and scored three tries, will replace Jack Wilson on the right wing for the match at Waikato Stadium in Hamilton.
Inside centre Rob Thompson has been ruled out with concussion, with utility back Matt Faddes, who has played wing and fullback this season, moving to centre.
All Blacks centre Malakai Fekitoa, who outshone Wallabies counterpart Tevita Kuridrani in Canberra last week in the victory over the ACT Brumbies, will take the number 12 jersey.
(Reporting by Greg Stutchbury; Editing by Ian Ransom)
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