Manchester United's 18-year-old forward was selected by manager Roy Hodgson, as was perpetually injured Arsenal midfielder Jack Wilshere, with the Three Lions announcing their final 23-man roster on Tuesday.
Wayne Rooney will captain England, which is in Group B with Wales, Russia and Slovakia.
Rashford began the season with United's U-18 team, rose to the first team, scored on his debut, scored winners in the Europa League and FA Cup final and then scored on his England debut in a friendly against Australia last week. He'll join Harry Kane, Jamie Vardy and Daniel Sturridge in the attack.
Among those not making the cut were Leicester City's Danny Drinkwater and Newcastle's Andros Townsend.
Here is England's squad in full:
GOALKEEPERS: Joe Hart (Manchester City), Fraser Forster (Southampton), Tom Heaton (Burnley)
DEFENDERS: Ryan Bertrand (Southampton), Gary Cahill (Chelsea), Nathaniel Clyne (Liverpool), Danny Rose (Tottenham), Chris Smalling (Manchester United), John Stones (Everton), Kyle Walker (Tottenham)
MIDFIELDERS: Dele Alli (Tottenham), Ross Barkley (Everton), Eric Dier (Tottenham), Jordan Henderson (Liverpool), Adam Lallana (Liverpool), James Milner (Liverpool), Raheem Sterling (Manchester City), Jack Wilshere (Arsenal)
FORWARDS: Harry Kane (Tottenham), Jamie Vardy (Leicester City), Marcus Rashford (Manchester United), Daniel Sturridge (Liverpool), Wayne Rooney (Manchester United)