The Queen's granddaughter and rugby player Mike announced their exciting news in a statement from Buckingham Palace.
Zara's pregnancy comes as Kate Middleton and husband Prince William also prepare to become parents for the first time.
In the statement, a spokesperson for the Palace said: "Mr and Mrs Mike Tindall are very pleased to announce that Zara Tindall is expecting a baby in the new year.
"The Princess Royal and Captain Mark Phillips, Mr Phillip and Mrs Linda Tindall, and members of both families are delighted with the news.
"This baby will be the first child for Mike and Zara and the third grandchild for the Princess Royal."
Zara, 32, and Mike, 34, met in 2003 during England's Rugby World Cup-winning campaign. They married at Canongate Kirk, in Edinburgh, in July 2011.
Check out who else is expecting a baby in our gallery below!