The British Olympic Association confirmed the 12-strong squad that will represent Team GB today and while the majority of selections were considered a foregone conclusion - officials were left with a difficult choice in the women's 10m platform event.
Stacie Powell booked her place by winning the trials in Sheffield but Gladding only placed third, behind Tonia Couch.
However, her fifth place finish at the recent European Championships in Eindhoven and strong showing at the Olympic test event proved enough to convince selectors.
Last February members of the British team watched in horror as Gladding was dragged lifeless from a pool in Russia after striking her head on the platform - her husband and coach later claiming he thought she had died.
But she has battled back to full health and selection also makes amends for her failure to make the team in Beijing four years ago.
"Since the disappointment of the 2008 Olympics I have had many ups and downs to get to this announcement," she said.
"I was making real headway until February 2011 and then I had my accident which threw me yet another curve ball.
"It has taken a lot but I am now fully back, ready and excited to put on my Team GB tracksuit.
"I really can't wait to be back on the boards in London competing in front of an amazing home crowd. It really is a dream come true."
Former world champion Tom Daley and Peter Waterfield will compete together in the 10m synchro and against each other in the 10m individual event.
And Daley claims he's in the form of his life after a successful weekend at the British Gas Diving Championships, in which he struck double gold.
"To be able to say that I will be competing in front of that home crowd is amazing," he said.
“I can’t wait to see the home crowd. There’ll be 17,500 people all behind us wanting us to do well and I can’t wait to hear the noise they’ll make.
“A home Games is a once in a lifetime opportunity and I really can’t wait to get onto those boards at the Aquatics Centre again.”
Jack Laugher is the youngest in the squad aged 17 and will compete in the 3m springboard with Chris Mears, who is also named in the 3m synchro along with partner Nick Robinson-Baker.
Alicia Bragg and Rebecca Gallentree are Team GB's women's 3m synchro pair while Hannah Starling competes in the individual 3m event.
The squad is completed by newly crowned European champions Couch and Sarah Barrow, who set a new British record in Sheffield this weekend in the women's 10m synchro.
“I am really pleased to see a strong set of athletes that have been selected on to Team GB," said diving head coach Alexei Evangulov.
"We have a good mix of youth and experience on the squad with half of the athletes going to their first Olympics.
"To compete at a home Olympics is a special experience and I think that the divers will get a boost from the home crowd support. "The results of the British Championships 2012 have impressed me greatly.
"I have never seen such a high quality of diving at the national competition. I am pleased to say that I am also proud of our coaches who have been so motivated. They approached this event with highest level of professionalism.
"We have also had some excellent results this year with one of our most successful showings at a FINA World Series and European Championships with medals coming in more than one event showing the depth we have within our squad.”