The deal includes the Grolsch Pasture, a branded continental-style bar located in the central Udderbelly venue, which seats 322 and is headline sponsored by digital TV channel E4.
The Pasture will deliver high profile brand presence for Grolsch, and present a little slice of Amsterdam within the internationally recognized comedy festival.
The E4 Udderbelly is a tent in the shape of a giant overturned purple inflatable cow and is hosting several of the festival's sold-out performances.
As part of the initiative, Grolsch will also launch the Grolsch Green, a mini golf course that complements the Udderbelly outdoor arena and reinforces the imagery of the latest Grolsch Blond TV ads currently screening on Channel 4.
The Green will play host to a series of unique performances from comedienne Janice Connolly, of 'Phoenix Nights' fame, and will also be the main arena for Grolsch sampling for the duration of the festival.
Grolsch senior Marketing Manager, Laura Burgoyne, says: "With the launch of Grolsch Pasture at E4 Udderbelly we have strengthened our association with pioneering comedy and increased our presence at arguably the UK's leading comedy event of the year.
"This new sponsorship platform will give show goers the opportunity to sample our brand portfolio and enjoy the Udderbelly atmosphere in the unmistakably, chilled-out Grolsch continental style."
Charlie Wood, director of Underbelly, said: "We are absolutely delighted with this fantastic new association with Grolsch particularly as it is such a strong brand and relevant to our comedy audiences."
The Grolsch Pasture is open until August 25.