Dixon is the only player to make his debut in the starting side - taking the place of blindside flanker Jerome Kaino - but fellow Highlanders loose forward Liam Squire has been named in the reserves for the match at Forsyth Barr Stadium against Wales and should get some game time.
Highlanders first five-eighth Lima Sopoaga has also been named in the reserves as Beauden Barrett gets the start in the No10 jersey.
The Highlanders also provide the two Smiths - Ben again on the right wing while halfback Aaron will play his 50th test.
Winger Waisake Naholo has moved to the bench as the outside back reserve and Julian Savea returns to his usual position on the left wing.
In other changes to the team which beat Wales in Wellington last Saturday, Charlie Faumuina starts at tighthead prop with Owen Franks dropping out of the squad, and Blues midfield back George Moala comes into the side at centre to replace Malakai Fekitoa.
Dixon (26) has been rewarded for his outstanding form over the past couple of seasons. He has been dynamic around the field, won plenty of lineout ball and been a ferocious defender.
A talented ball runner, who started his career at No8, he has specialised on the blindside flank in the past two years.
He should feel right at home under the roof at the stadium and will benefit from the experience of captain Kieran Read and Sam Cane in the loose forward trio.
Dixon made his debut for New Zealand Maori in 2012 and has now made the ultimate step.
Squire made the move from the Chiefs to the Highlanders this year and the move has paid off almost immediately. He is a tough and uncompromising forward who has blinding speed.
Many thought Sopoaga may have got a start on his home ground but Barrett has been superb off the bench in the first two tests against Wales and that form had to be rewarded.
Sopoaga has played just the one test - against the Springboks in Johannesburg last year - in which he put on an impressive show.
Aaron Cruden has been cleared of serious injury after being stretchered off in Wellington but has had a limited workload this week.
Blues prop Ofa Tu'ungafasi (24) is on the bench and will make his test debut.
Along with Aaron Smith, it is lock Brodie Retallick's 50th test. The duo made their test debuts together against Ireland in 2012.
All Black coach Steve Hansen said, in picking the team, the selectors had to take into consideration the need to find out more about the squad.
"With the series won, it came down to risk and reward and we felt the rewards of seeing these new players in the test arena, after watching them for three weeks on the training pitch, outweighed any risks. It'll be exciting to see these new players making their mark for the first time in the black jersey,'' he said.
"That said, we're expecting another brutal test, with the expectation that Wales will again chuck the kitchen sink at us. We've seen over the last two tests that they're a very good side who play physical, combative and innovative rugby.''
"We have a further two players playing their 50th test this weekend. On behalf of the team, we would like to congratulate Aaron and Brodie on reaching this special milestone and they can be rightly proud of everything they have achieved so far in the black jersey.
Meanwhile, injury has forced the early departure of three members of the Wales squad.
Veteran prop Gethin Jenkins, who started in both tests so far, picked up a calf injury in Wellington, while lock Bradley Davies injured his knee in the same game.
Loose forward Josh Turnbull suffered a shoulder injury in his only game on tour against the Chiefs last week in Hamilton and had also headed home.
Wales is due to announce its team this morning and will arrive in Dunedin this afternoon.
