Berquist has been named at first five-eighth and Dagg at fullback for the game in Rotorua.
It is a fresh start for both players, but for different reasons.
Berquist has already had time with the Highlanders but had to leave Otago to get his career back on track, while Dagg is in his first Super 14 season.
The Highlanders were well served at first five for years with Tony Brown and Nick Evans dominating the No 10 jersey.
But last year, the trio of James Wilson, Daniel Bowden and Mike Delany were hot and cold.
At fullback, the Highlanders have tried Evans, Wilson, Craig Clare and Glen Horton in recent years.
There is plenty of excitement about Dagg, the former schoolboy and sevens star who has electric pace.
Another feature of an experimental Highlanders line-up is the new-look midfield pairing of Jayden Hayward and Jason Shoemark, while Kenny Lynn and Lucky Mulipola join Dagg in a green back three.
New Highlanders captain Jimmy Cowan and fellow All Blacks Adam Thomson and Jamie Mackintosh are not playing, while Ben Smith and Fetu'u Vainikolo are injured.
Meanwhile, All Blacks Richard Kahui, Liam Messam and Sitiveni Sivivatu are set to get game time for the Chiefs in Rotorua.
Chiefs coach Ian Foster is keen to see his players build on the momentum of last Saturday's initial pre-season run where the Chiefs beat the Blues 21-17 at Pukekohe.
"The timing is right to get Kahui, Messam and Sivivatu back in the mix, particularly with the next preseason match for our guys not scheduled until February 7 against the Hurricanes in Gisborne," Foster said.
"On Friday night we will again be putting our systems to the test as well as putting new combinations out on the field."
Former Highlanders Wilson, Delany, halfback Toby Morland and No 8 Colin Bourke start for the Chiefs.
Teams
Highlanders: Israel Dagg, Lucky Mulipola, Jason Shoemark, Jayden Hayward, Kenny Lynn, Matthew Berquist, Sean Romans, Steven Setephano, Tim Boys, Hayden Triggs, Ross Kennedy, Josh Bekhuis, Anthony Perenise, David Hall, Keith Cameron.
Reserves: Jason Rutledge, Clint Newland, George Naoupu, Alando Soakai, Scott Cowan, Dan Bowden, Pehi Te Whare, Johnny Leota, Brett Mather, Karne Hesketh, Chris King, Peter Mirrielees, Tom Donnelly, Chris Noakes.
Chiefs: James Wilson, Lelia Masaga, Jackson Willison, Dwayne Sweeney, Tim Mikkelson, Mike Delany, Toby Morland, Colin Bourke, Tanerau Latimer, Liam Messam, Craig Clarke, Toby Lynn, James McGougan, Aled de Malmanche, Joe Savage.
Reserves: Hika Elliot, Hikairo Forbes, Sona Taumalolo, Culum Retallick, Romana Graham, Luke Braid, Serge Lilo, Sione Lauaki, David Bason, Sitiveni Sivivatu, Callum Bruce, Richard Kahui, Save Tokula, Trent Renata.
