Peake, who played an integral role in Australia's title success in South Africa in 2024, is the only member of Australia's squad that won the Under 19 World Cup last year.
He amassed 120 runs from four innings at the tournament - including an unbeaten 46 not out in the final against India - after being called up as an injury replacement player during the early stages of the event.
The 19-year-old also featured in the Prime Minister's XI against England in Canberra last month where he scored an excellent half-century against many of the tourists' Ashes squad.
Nitesh Samuel, Naden Cooray and William Taylor are the three newcomers in the squad and have been rewarded with selection for their impressive performance at this month's Under-19 Male National Championships.
The Australia team will be coached by Tim Nielsen, who believes the side is well balanced to make a bid for back-to-back titles.
"We're delighted to announce a strong and well-balanced squad for the ICC Under-19 World Cup," Nielsen said.
"Our focus has been on selecting a group with complementary skill sets that provide the best chance of success in the tournament.
"The players named have impressed with their performances during the U19 series against India in September and at the recent National U19 Championships in Perth.
"It's an exciting group, some have already experienced senior training environments, while others are progressing rapidly through our pathway
"The World Cup is a fantastic opportunity for these young cricketers to showcase their talent and test themselves against the best in the world."
Australia are drawn in Group C at the Under 19 World Cup and will take on Ireland, Japan and Sri Lanka during the opening round of the event.
The top three teams from each of the four groups will progress to the Super Sixes stage, which will be followed by the semi-finals and final.
Australia squad: Oliver Peake (c), Kasey Barton, Naden Cooray, Jayden Draper, Steven Hogan, Thomas Hogan, Ben Gordon, John James, Charles Lachmund, Alex Lee Young, Will Malajczuk, Nitesh Samuel, Hayden Schiller, Aryan Sharma, William Taylor.
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