"Our pace bowling stocks are strong at the moment and we feel Lockie will add another dimension to the picture, and will create some great competition," Larsen said.
"There's no doubt Lockie has been knocking on the door for a while now and we're delighted to finally bring him into the test fold.
"It's well documented he has raw pace, but he also possesses a quality bowling skillset and has proved his durability."
The squad to take on England and Australia also includes captain Kane Williamson, who is expected to be fit to play after missing the recent Twenty20 series with a re-occurring right hip injury.
"Kane's made good progress over the past fortnight and we're delighted to welcome back a player of his class and experience," said Larsen.
Mitchell Santner and Todd Astle's batting abilities have seen them earn the nod as the spin options over subcontinent standouts Will Somerville and Ajaz Patel, with there likely to be limited overs on offer for the spinners on New Zealand pitches.
"There were certainly some tough decisions," explained Larsen.
"We've gone with the versatility of Mitchell and Todd who have experience in the conditions we will face over the next few months and will bolster our lower order batting."
The first test against England gets underway in Mount Maunganui on Thursday, with the second starting in Hamilton on the following Friday.
Black Caps test squad: Kane Williamson ©, Todd Astle, Tom Blundell, Trent Boult, Colin de Grandhomme, Lockie Ferguson, Matt Henry, Tom Latham, Henry Nicholls, Jeet Raval, Mitchell Santner, Tim Southee, Ross Taylor, Neil Wagner, BJ Watling.