The 21-year-old is hoping the party will not only help others but show her critics that she has a “caring and sensitive” side to her personality.
The soiree will include a three course dinner with waiters on hand to make sure Miley’s guests don’t lift a finger.
“Most people only see the Miley who puts on a show,” an insider told the Star.
“But she's really caring and sensitive and wants to make a difference to the lives of homeless people. She's putting a lot of effort into this party, there'll be waitresses to serve them.
“The whole thing will cost her around £6,000 but she feels that it's the least she can do.”
Miley has worked closely with a homeless shelter in LA for the past couple of years and the cause means a lot to her. In August she invited Jesse Helt, a man she met at the shelter, as her date to the MTV music awards.
Jesse reduced the Wrecking Ball singer to tears when he went up on stage and collected her award.
“There will be fun and games after the food too, and Miley is bound to put on a little show for them to get the party started,” the source added.
Let’s hope they all like twerking…