Under-pressure Gatland rings Wales changes for Six Nations
Back-row Faletau has not played for Wales since the 2023 World Cup because of injury.
Jac Morgan, a flanker, takes over the captaincy from an injured Dewi Lake.
The uncapped duo of Scarlets wing Ellis Mee and Ospreys fly-half Dan Edwards have also been included in a 34-strong squad named by Gatland, 61.
This season's Autumn Nations fly-halves Gareth Anscombe and Sam Costelow are absent, however, with Costelow set to miss the whole tournament after suffering a shoulder injury playing for regional side Scarlets in their European Challenge Cup defeat by Gloucester on Friday.
Gatland, in his second spell as Wales coach, remains in charge after a dire 2024 that extended the side's losing streak to a national record 12 matches.
Wales' 45-12 drubbing by the Springboks in Cardiff in November also meant they finished a calendar year without a win for the first time since 1937.
They now have a tough start to the Six Nations, against France in Paris on January 31, but Gatland insisted: "We've selected a squad that we feel has a good blend of exciting young talent and experience."
Wales squad
Backs (15): Josh Adams, Ellis Bevan, Dan Edwards, Josh Hathaway, Eddie James, Ellis Mee, Blair Murray, Joe Roberts, Tom Rogers, Ben Thomas, Nick Tompkins, Owen Watkin, Liam Williams, Rhodri Williams, Tomos Williams
Forwards (19): Keiron Assiratti, James Botham, Elliot Dee, Taulupe Faletau, Dafydd Jenkins, WillGriff John, Evan Lloyd, Kemsley Mathias, Jac Morgan (capt), Sam Parry, Tommy Reffell, Will Rowlands, Nicky Smith, Gareth Thomas, Freddie Thomas, Henry Thomas, Christ Tshiunza, Aaron Wainwright, Teddy Williams
Coach: Warren Gatland (NZL)