Justice Minister Janice Sherry says treating diseases caused by smoking has created an extraordinary burden on the Island's health-care system.
She says the province's lawsuit will claim for the recovery of provincial health-care expenditures on behalf of P.E.I. taxpayers.
In the fall of 2011, Prince Edward Island retained a legal consortium to represent the province.
Last Friday, the Quebec government announced a $60-billion lawsuit against the tobacco industry.
Five provinces have now filed similar lawsuits — British Columbia, Ontario, New Brunswick, Newfoundland and Quebec — while five others have announced plans to do the same.