The service, which will be trialled for two weeks starting later this month, will see passengers able to loan iPads on flights longer than 90 minutes.
In a statement today, the company said it would charge $AU10 for the loan of the device, which will come pre-loaded with movies, TV programs, eBooks, music videos, games and CDs.
"Given the demand for the iPad so far, I anticipate it will have strong appeal amongst our passengers," Jetstar CEO Bruce Buchanan said in a statement.
"Based on demand for the iPads as part of the trial, we'll be looking to roll out the devices across our entire domestic and international network later in the year."
The iPad, one of the hottest products of the year, has a screen size of approximately 9.7 inches, similar to that of current in-flight entertainment systems.
It's understood that the company has bought "several hundred" iPad devices from Apple as part of the trial, which will roll out to several domestic routes within Australia at the end of the month.
Jetstar, a subsidiary of Australian airline QANTAS, has partnered with Australian entertainment service provider Stellar Inflight and Bluebox Avionics, a British company, to custom-build applications for the device.