Fiorina, 61, was a presidential candidate herself before she dropped out of the race early in the primary season.
By naming Fiorina, observers believe the Tea Party favourite would gain the necessary momentum to defeat Trump in the next primary State of Indiana.
Cruz, 45, is currently trailing Trump by more than 400 delegates and a win in Indiana next week would make it easier for the New Yorker billionaire to reach the 1237 delegates to become GOP's presidential nominee.
"Over and over again, Carly has shattered glass ceilings. But in addition to being a woman of extraordinary experience, she's also a woman of deep principle," he said.
Fiorina is not the first woman vice presidential pick.
In 2008 presidential election, the then Republican presidential candidate Senator John McCain had then Alaska Governor Sarah Palin as his vice presidential running mate.
However, it is for first time a candidate has named a running mate prior to receiving the nomination since Ronald Reagan in 1976.
"For the 13 months of this race, there has been a proven, consistent, courageous fighter. A fighter who terrifies Hillary. And who will do the same to our enemies. And that's why I am proud to announce Carly Fiorina as my Vice Presidential running mate," Cruz said.
In her remarks, Fiorina said Cruz is the best person to lead the country now.
"Donald Trump and Hillary Clinton both would be disastrous for this nation. They are not going to challenge the system that has sold us all down the river. They are the system," she said.
He came last in four of the five primaries, as a result of which he could not get even a single delegate.
The elections were swept by Trump in all the States of Maryland, Delaware, Connecticut, Pennsylvania and Rhode Island.
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