After an outstanding start to the domestic season, McSweeney has beaten Marcus Harris for the vacant spot in the Australian XI.
Harris, who last played a Test in January 2022, has even missed out on being part of the extended squad after selectors chose Australia's white-ball wicketkeeper Josh Inglis to be the spare batter.
Left-hander Harris top-scored for Australia A in the recently-completed tour match at the MCG, but he also fell for a golden duck in the second innings.
Josh Inglis has been included in the 13-man Test squad as the spare batter. (Joel Carrett/AAP PHOTOS)
McSweeney will become the first Australian player in 47 years to make his Test debut as an opener despite never having batted there at Sheffield Shield level.
The 25-year-old top-scored in both innings of the first Australia A match in Mackay when batting at No.4.
For the next match, selectors decided to trial McSweeney as an opener, swapping places with NSW teenager Sam Konstas.
He was unable to convert starts - 14 and 25 - in both innings at the MCG, seemingly leaving the door ajar for Harris to take his spot.
But chairman of selectors George Bailey had seen enough to pick McSweeney for the first Test at Optus Stadium, starting on November 22.
"Nathan has displayed the attributes we believe will equip him well for Test cricket along with a strong recent record in domestic cricket," Bailey said.
"His performances for South Australia and Australia A weighed in his favour and supports our view he is ready for the opportunity at Test level.
"Similarly, Josh (Inglis) has been in great touch in the Sheffield Shield competition and deserves his place in his first Test squad.
"Scott (Boland) has been a top-level performer when given the opportunity at Test level and remains a valued member of the squad."
After allrounder Cameron Green was in October ruled out for the summer with a back injury, selectors confirmed Steve Smith would be shifting back to his preferred spot of No.4 following four Tests as opener at the start of this year.
Western Australian opener Cameron Bancroft and Harris were initially thought to be next-in-line having played Tests before and performed strongly at Shield level in recent seasons.
But Bancroft couldn't be considered after going through a dire form slump at the worst possible time.
Bancroft, who last played a Test in the 2019 Ashes, had dominated for WA during the past two seasons, but his top score across eight innings this summer is 16.
AUSTRALIA SQUAD: Usman Khawaja, Nathan McSweeney, Marnus Labuschagne, Steve Smith, Travis Head, Mitch Marsh, Alex Carey, Pat Cummins (capt), Mitchell Starc, Nathan Lyon, Josh Hazlewood, Josh Inglis, Scott Boland.