Sooryavanshi, 15, is fresh off a breakout campaign in the Indian Premier League in which he topped the scoring charts with 776 runs in 16 matches, while also breaking Chris Gayle's record for most sixes in a season.
His performances for the Rajasthan Royals made him the first player in IPL history to be named both the Most Valuable Player (MVP) and the Best Emerging Player, with many tipping him for a spot in the senior Twenty20 International side.
Should Sooryavanshi go on to make his debut against either Ireland or England, he would become the youngest player to represent an Indian men's senior team, bettering great Sachin Tendulkar, who made his debut aged 16.
"We've seen what he can do, towards playoffs, almost single-handedly carried Rajasthan Royals," selection panel chairman Ajit Agarkar told reporters.
"Not just this season, had a great start and to back it up in a competition that is as competitive and high-pressure, he's a game-changer. We've got high hopes of him, and he has picked himself."
Agarkar added that Iyer, who replaces Suryakumar Yadav, had been appointed captain after guiding Kolkata Knight Riders (KKR) to the Indian Premier League title in 2024, while also leading other franchises in the league.
Iyer last played a T20I in 2023.
"Led a team to (IPL) title, his own performances have been good. He was close to being part of the World Cup squad, in my opinion, was a 'stand-out candidate'," Agarkar added.
India play Ireland in two T20Is later this month, before a five-match series against England in July.
The BCCI also named their squad for this year's men's cricket competition at the Asian Games in Japan, which includes veteran bowler Jasprit Bumrah.
The Asian Games men's competition will begin on September 24th, with the final scheduled for October 3rd.
T20I Squad for Ireland and England series: Shreyas Iyer (captain), Abhishek Sharma, Sanju Samson, Ishan Kishan, Shivam Dube, Tilak Varma, Nitish Kumar Reddy, Axar Patel, Washington Sundar, Varun Chakravarthy, Mohammed Siraj, Arshdeep Singh, Prince Yadav, Vaibhav Sooryavanshi
Squad for Asian Games: Shreyas Iyer (captain), Tilak Varma, Abhishek Sharma, Sanju Samson, Ishan Kishan, Shivam Dube, Nitish Kumar Reddy, Axar Patel, Washington Sundar, Varun Chakravarthy, Ravi Bishnoi, Jasprit Bumrah, Harshit Rana, Arshdeep Singh, Vaibhav Sooryavanshi