Wallace was named to partner captain Brian O'Driscoll in the centres for the match at Waikato Stadium after he was a late call-up to the side following Gordon D'Arcy's injury in the second Test in Christchurch.
D'Arcy returned home after the 22-19 loss, with Wallace summoned from Ireland on Sunday.
Keith Earls, who played inside centre in the first Test at Eden Park but was ruled out of the second in Christchurch with a chest injury, has returned to the starting side.
Earls moves onto the left wing, with Andrew Trimble dropping to the replacements bench.
Peter O'Mahony, who came off the bench in Christchurch, will replace number eight Jamie Heaslip, who was ruled out earlier this week with a broken finger.
Chris Henry has come into the match-day squad to replace O'Mahony on the bench.
Captain O'Driscoll and tighthead prop Mike Ross, who were monitored throughout the week after needing X-rays on facial injuries, have both been named in the starting side.
The All Blacks have already sealed the series, and made six changes to their starting line-up, but Ireland still have the opportunity to end their drought against the New Zealanders.
Ireland have never beaten the All Blacks in 26 matches, a run stretching back to 1905 when they first began playing Tests, though the world champions suffered a huge scare in Christchurch, needing an 80th minute drop-goal from fly-half Daniel Carter to secure victory.
Ireland: 15-Rob Kearney, 14-Fergus McFadden, 13-Brian O'Driscoll (captain), 12-Paddy Wallace, 11-Keith Earls, 10-Jonathan Sexton, 9-Conor Murray; 8-Peter O'Mahony, 7-Sean O'Brien, 6-Kevin McLaughlin, 5-Donnacha Ryan, 4-Dan Tuohy, 3-Mike Ross, 2-Rory Best, 1-Cian Healy
Replacements: 16-Sean Cronin, 17-Declan Fitzpatrick, 18-Donncha O'Callaghan, 19-Chris Henry, 20-Eoin Reddan, 21-Ronan O'Gara, 22-Andrew Trimble.