The annual event kicks off the holiday season.
The pair of old friends will celebrate with a CD release concert at Joe's Pub.
Rob McClure and Tony Danza lead the company of the new musical.
The fifth annual event will benefit spinal cord injury research.
Midler's first studio album in eight years will be produced by Marc Shaiman.
Additional names have been added to the lineup for the 26th Annual Festival of New Musicals.
David Byrne and Fatboy Slim's musical gets a new album.
Jane Lynch will host the benefit, which also stars Sting and Patti LuPone.
"...before Halloween, isn't that crazy?!" said Menzel on her official Facebook page.
The event will pay tribute to the musicals the company has presented over the past 26 seasons.