This won't be her first time in the United Nations.
If confirmed, Craft will have the hard job of defending Trump's "America First" foreign policy and navigating Trump's criticism of the world body while getting global diplomats to back USA policies.
As US ambassador to Canada, she played a role in facilitating the US-Mexico-Canada trade agreement, a revamp of the North American Free Trade Agreement.
Craft served as a United States delegation to the UN General Assembly during the George W. Bush administration. "Ambassador Craft has been an outstanding advocate for America's national security and economic interests in Canada and she is extremely well-qualified to do the same at the United Nations", Pompeo said in a statement Friday.
Ambassador Kelly Craft called China's detention of two Canadians "unacceptable" in her first public comments about the cases this week.
The announcement comes a week after Trump's first choice to replace Nikki Haley at the United Nations, the former Fox News host and state department spokeswoman Heather Nauert, withdrew her candidacy.
USA media reports say the role will probably be downgraded from the Cabinet-level position it was during Ms Haley's tenure.
In Canada, she can operate at arms length from the US administration and she had concerns about the prospect of daily interactions with the White House and taking orders from Jared Kushner or Bolton.
Trump said December 7 that he would pick the former Fox News anchor and State Department spokesperson for the United Nations job, but her nomination was never formalized. "I was proud to recommend this remarkable Kentuckian to President Trump".
The White House search for a replacement for Haley focused on female candidates, and those who had already been confirmed by the Senate for a current or past posting, people familiar with the selection process said. They were also described as "high-rate" customers, and their listing bore the notation R (20), which former Trump Hotels employees have said indicates customers who've stayed at least 20 times.
Joe Craft was worth an estimated $1.4 billion in 2012, according to Forbes magazine.