Save the Children CEO Mat Tinkler said the money, which will come from the Humanitarian Emergency Fund, will help save the lives of kids living in dangerous and extreme environments.
"The number of people going hungry around the world has been skyrocketing and, tragically, children are dying every day in the worst-hit areas," he said.
But he said more needed to be done to combat starvation and famine.
"Unfortunately, we are still seeing unprecedented levels of hunger and the emergency is far from over," he said.
"Additional resources are needed to ensure that the threat of famine no longer looms and that every child, regardless of where they live, has access to the basics - food, water, shelter, healthcare, and education."
Help Fight Famine campaign spokesman Reverend Tim Costello said Australia's combined commitments had now made a "decent contribution" to the global famine response.
"Australian efforts will alleviate suffering and prevent deaths," he said.
"Of course with more we can do more. We fully acknowledge Australia's efforts and will continue making the case for Australia to invest in creating a stronger, safer world for all."
The $29 million includes $15 million for people in drought-affected areas in Ethiopia, Kenya and Somalia, $4 million for food support in Yemen, and $10 million for food and monetary help for refugees and other vulnerable people in Lebanon and Jordan.
The package is in addition to a previously announced $6 million commitment to help people impacted by the conflict in Sudan.
The number of people at risk of food insecurity has soared to 350 million globally since the COVID-19 pandemic.
Foreign Affairs Minister Penny Wong said conflict and climate change were driving unprecedented levels of humanitarian need.
"Australia is using all elements of our national power to shape the world for the better, including by providing humanitarian assistance to the most vulnerable," she said.
The World Food Programme estimates 90 per cent of the Somalian population are experiencing insufficient food consumption.