The invitation marks the UW's first-ever trip to the Fiesta Bowl game and the Huskies' third-ever meeting against Penn State, the first since they met in the 1983 Aloha Bowl.
Penn State's 1982 national title was also preceded by a 26-10 win over USC in the Fiesta Bowl to close out the 1981 season.
Washington and Penn State will meet in the postseason for the second time.
Penn State is the home team for the Fiesta Bowl, which will be played at University of Phoenix Stadium at Glendale, Ariz., on December 30 at 4 p.m.
The University of Washington Huskies are heading to the Fiesta Bowl.
Iowa had beaten Penn State 12 straight times in Iowa City and on Saturday night it looked like the Hawkeyes were closing in on making it 13 as the Nittany Lions leaned on the ropes. Curtis Enis was the offensive player of the game, while Brandon Noble was the defensive player of the game.
"Calls are coming in furiously", Fiesta Bowl executive director Mike Nealy said. It will be the Nittany Lions' 7th appearance in the Fiesta Bowl, but it's the first since they beat Texas 20 years ago. The Nittany Lions are 6-0 in Fiesta Bowl games.
The No. 11 Huskies will play against No. 9 Penn State.
The Huskies have earned a bowl berth for an eighth consecutive season.
Penn State and Washington both finished the regular season with a 10-2 record.