The young gun makes his return on Boxing Day (KO 14.05) as the Dragons continue their quest to remain unbeaten for the month of December.
19-year-old Morgan, who will partner up with Jack Dixon in the centre, is one of two changes to the team that beat Zebre in the Guinness PRO12 last weekend.
Looking forward to the derby, Skipper Rynard Landman commented: "I can feel the vibe already in the squad and coaches. We had a derby against the Ospreys and it was good so I can imagine the passion with the festive spirit taking it over the top.
"I am excited about experiencing that for the first time. Kingsley (Jones) has told me that it's going to be fast and a bit like Super Rugby.
"The Blues had a good win against the Scarlets and are above us in the league at the moment so the next two games are vital for the region so that we can climb the table and get our campaign back on track."
The replacements bench sees three changes made to it as Welsh international Ian Gough has been deemed fit to join the replacements bench as well as Dan Way and Geraint Rhys Jones. These all join Elliot Dee, Owen Evans, Cory Hill, Richie Rees and Dorian Jones.
Newport Gwent Dragons Team to face Cardiff Blues
Tom Prydie, Matthew Pewtner, Tyler Morgan, Jack Dixon, Hallam Amos, Jason Tovey, Jonathan Evans; Phil Price, T. Rhys Thomas, Brok Harris, Andrew Coombs, Rynard Landman (c), James Thomas, Nic Cudd, Lewis Evans.
Replacements: Elliot Dee, Owen Evans, Dan Way, Cory Hill, Ian Gough, Richie Rees, Dorian Jones, Geraint Rhys Jones.
Guinness PRO12
Suite 208, Alexandra House,
The Sweepstakes
Ballsbridge, Dublin 4, Ireland