"Ayesha has always understood, and seen firsthand, the link between infectious disease and inequality. That makes health care political, and that made Ayesha political too," wrote Ardern.
"Her wisdom on this topic is one of the many reasons that I asked her to join my Cabinet in November."
Ardern felt privileged they had someone with expertise, passion and heart, who could tell stories of past patients "who have touched her as naturally as she can talk about the complexities of disease".
"A compassionate expert, she is the kind of leader the world needs in this moment, and for many years to come."
Others in this year's list include US immunologist Kizzmedia Corbett whose work was key to the development for the Moderna vaccine for Covid-19, Democrat senator Raphael Warnock and 16-year-old TikTok sensation Charli D'Amelio.
Time's editorial director has described everyone on the list as poised to make history.
Last year Ardern appeared on the cover of Time Magazine marking the first anniversary of the March 15 terrorist attack in Christchurch.