Venus, 36, is the oldest women's semi-finalist since Martina Navratilova in 1994 as she also moved a step closer to a final showdown with her sister and defending champion Serena Williams.
The American veteran, seeded eight, enjoyed a 7-6 (7/5), 6-2 victory over Kazakhstan's world number 96 Yaroslava Shvedova.
German fourth seed Kerber, meanwhile, reached her second Wimbledon semi-final with a 7-5, 7-6 (7/2) win over Simona Halep, the fifth seed from Romania.
Tuesday's other quarter-finals see six-time champion Serena face Russian 21st seed Anastasia Pavlyuchenkova.
Venus, who won the last of her seven Grand Slam titles at Wimbledon in 2008, is back in the last-four of a Grand Slam for the first time since the 2010 US Open.
Eight-time Wimbledon finalist Venus trails 3-2 in her five career meetings with 28-year-old Kerber, who won their only meeting on grass in the 2012 Olympics at Wimbledon.
"Oh wow, what a tough day on the court. It seemed she was going to win the tie-break but somehow I walked out with the set," Venus said.
"I love playing the game. When you are winning matches it makes it that much sweeter.
"You can't always have these big moments. I guess if you are Serena Williams it happens a lot, but for Venus Williams this is an awesome day.
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