Anywhere from $2 billion to $5 billion in new or redirected funds will go towards upgrading the Australian Defence Force's autonomous capabilities under a revised investment plan.
The funding will bring total spending on drones to anywhere from $12 billion to $15 billion over the next decade.
Defence Minister Richard Marles will launch the program, along with the 2026 National Defence Strategy, at the National Press Club on Thursday.
Funding will go towards uncrewed systems large and small, as well as those with maritime, air and land capabilities.
Conflicts in Ukraine and the Middle East had demonstrated the importance of autonomous systems, Mr Marles said on Tuesday.
"Over the past two years, conflicts overseas have shown just how important drones and uncrewed systems are for our Defence Force," he said.
"The war in Ukraine and conflicts in the Middle East underscore the rapid advancements in these technologies, and the ability for these systems to generate significant asymmetric advantage against larger, more expensive platforms."
It adds to investments in the nation's counter-drone capabilities, including to tackle the threats posed by smaller, high-volume drone threats.
Australia was at the forefront of developing modern drone technologies, Defence Industry Minister Pat Conroy said.
"In many parts of this technology, we lead the world," Mr Conroy told ABC Radio.
"It will help deter conflict and it will also employ more Australians in a very high-skilled Australian defence industry."
The Ghost Shark, a large autonomous undersea vehicle, and the Ghost Bat, an aerial system with surveillance and combat capabilities, are both designed and manufactured domestically.
It comes as the Australian Defence Force prepares to welcome Lieutenant General Susan Coyle as its first female chief of army.
Currently chief of joint capabilities, Lt Gen Coyle will step into the role in July.