The Nittany Lion will also be on hand to entertain children.
Sarah Kline (sophomore-human development and family studies) said she fondly remembers last year's ceremony.
"It was fun. It made you feel like you were part of the town, part of the community," she said. "For me, it was nice, and you could tell the kids were having a great time."
Kauffman agreed and said he had "a blast" last year.
"Being at Penn State, sometimes you forget you're also in a small town. This sort of stuff fosters a real sense of togetherness that makes the town seem more friendly and more like it's your home," he said.
"It kind of brings you back to when you were a little kid and Christmas was the most exciting time of the year. Besides, it was cool because I'd never seen a real, live reindeer before," he added.
Some Allen Street businesses are also preparing for the event.
For instance, Aurum Jewelers & Goldsmiths, 132 S. Allen St., is holding its Ladies' Night celebration that will coincide with the Holiday Tree Lighting Ceremony, store manager Babette Sabol said.
She said during the celebration, women can fill out Christmas wish lists.
She added that a featured designer would be speaking with store customers and refreshments would be provided.
"It's really nice to have a lot going on downtown to kick off the season," Sabol said.
