The restrictions will come into place at midnight.
Donegal will move into Level 3 restrictions for three weeks, it has been confirmed.
The Cabinet made the decision this evening arising from a National Public Health Emergency Team (NPHET) recommendation.
Taoiseach Micheál Martin announced the news on Thursday evening, saying: "Tonight's decision is based on frankly very worrying data provided by NPHET.
"The number of deaths is continuing to increase."
He confirmed that clusters are growing throughout the county, and in one local district area (Stranolar), the infection rate is 336 per 100,000.
Thursday saw 42 confirmed Covid-19 cases in Donegal, while it is also believed that Donegal now has 122.5 confirmed cases per 100,000 people, up from 106.2 on Wednesday.
One major difference between Donegal and Dublin's lockdown restrictions is that pubs that don’t serve food will be allowed stay open, but can only serve a maximum of 15 people and they must be outdoors.
Indoor gatherings will be banned and outdoor gatherings will be strictly limited to 15 people.
Households will be limited to a maximum of six visitors from one other household, and weddings and funerals will be limited to a maximum of 25 attendees.
Martin also confirmed that Louth, Waterford, Wicklow, Kildare and Galway are all being monitored closely.
Fine Gael Joe McHugh said that the people in Donegal now have to "roll up their sleeves" to get back to Level 2.
