There will be opportunities to view the ceremony from the pavement around Dock End, but the roads remain open throughout.
Animated Objects say that in the parade, which is due to start at 10am, there will be models of army patrol vehicles inspired by the Yorkshire Regiment, dazzle warships and a special series of pieces in remembrance of the First World War.
Dawn Dyson-Threadgold, Creative Director of Animated Arts, said: "Hundreds of children from local schools have been involved in making wonderful pieces for the parades [also on in Scarbrough and Filey] and you can see their work in all its glory as they make their way in each town.
"It will truly be a visual spectacle to remember!"
The programme for the event at Dock End on Monday, as published on the Whitby Town Council website:
9.30am: All Cadets, Veterans arrive for parade. Deputy Commanding Officer arrives.
9.45am: Mayor and councillors arrive.
10am: School parties taking part in the parade organised by Animated Objects arrive at Dock End
10.15am: RNLI/Flotilla Moves/Rows to Flag Raising Position.
10.20am: First Fanfare played on arrival of Armed Forces Flag.
10.25am: Lord Lieutenant's Army Cadet receives Armed Forces Flag.
10.30am: Flag-raising, second and third fanfare, single aircraft fly-over, parade dismiss.
10.45am: Flag-raising ceremony finished.