Mrs Clinton broke the news in a tweet late on Friday. She prepares an official announcement on Saturday.
Mrs Clinton passed over more left-leaning candidates in favour of the 58-year-old senator, that is a solid supporter of free-trade arrangements.
His house state of Virginia is a significant battleground in the coming political election.
Who is Tim Kaine?
Mr Kaine speaks fluent Spanish and also could assist the Clinton project preserve its support amongst Hispanic Americans - a growing ballot bloc.
A skilled political leader that has actually been toughly vetted, he is considered a "secure" selection for the vice-president port. He directly opposes abortion but supports abortion legal rights.
Analysis: Kim Ghattas, BBC News, Washington
Clinton opted for compound not crackle, a secure option rather than a firebrand that might delight the party faithful.
She felt great possibly that she might keep left-leaning Democrats on her side while broadening her appeal with a centrist running companion, connect to those independents and even modest Republicans turned off by their party's prospect Donald Trump.
Most importantly her aides had actually informed me she desired a person she really felt comfy working with for the following 4, also 8 years, somebody who understood the best ways to get points done, and Virginia Senator Tim Kaine's document as a former mayor as well as guv fits that description. He's likewise never lost a political election.
He will certainly let down some liberals particularly because of his pro-trade placement, which he will have to toughen up now.
The Republican National Committee dismissed the ticket as the "fell short Democratic status". But even some Republicans, like Arizona senator Jeff Flake, said Mr Kaine was an all around nice guy.
Mrs Clinton claims her running mate has a relentless positive outlook, a much-needed quality in an election period usually described as dark because of the rhetoric of Donald Trump.
Mr Kaine was a finalist to be Barack Obama's running mate in 2008 and also acted as Virginia governor before his time in the Us senate.
Mrs Clinton additionally apparently interviewed liberal firebrand Senator Elizabeth Warren of Massachusetts as well as Senator Cory Booker, an African-American senator from New Jersey. Agriculture Secretary Tom Vilsack was claimed to have actually been on her shortlist.
Republican governmental candidate Donald Trump, in a message to his supporters, described Head of state Obama, Mrs Clinton and also Mr Kaine as "the supreme insiders" and also interested voters to not "let Obama have a third term".
Republican Event chief Reince Priebus tweeted scornfully: "Hillary Clinton's option of Tim Kaine not does anything to link a broken Democrat base driven away by her dishonesty as well as cronyism."
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