Currently playing for Braintree Town in the English fifth tier, centre back Smith has not featured for the All Whites since 2024 but joins captain and fellow 2010 alumni Chris Wood in the 26-man roster for the June 11-July 19 finals in the United States, Canada and Mexico.
Smith's selection may prove polarising in New Zealand but Bazeley is banking on the 36-year-old's experience and leadership to make a difference at the All Whites' third World Cup appearance and first in 16 years.
Australia-born Bayliss has had a break-out season for the Newcastle Jets, helping the former A-League strugglers reach the semi-finals.
The 23-year-old Paris Games Olympian takes his place only two months after being called up to his first New Zealand squad for home friendlies against Chile and Finland.
He joins an experienced midfield contingent including Joe Bell, Marko Stamenic and Ryan Thomas.
New Zealand will play Iran, Egypt and Belgium in the group stage and hope to post their first World Cup win after missing the knockout phase in 2010 with three straight draws.
Fullback Liberato Cacace was included despite an injury-blighted season with Welsh club Wrexham, joining Auckland FC's Francis de Vries, who has been sidelined for five weeks with a calf strain.
Michael Woud earned a spot as the third goalkeeper behind Max Crocombe and Alex Paulsen.
"We've definitely got a good depth of players to select from," Bazeley told reporters at Eden Park.
"The last week has been challenging, a lot of difficult conversations.
"Having to speak to players and let them down ... has been really challenging."
Striker Wood, New Zealand's most prolific goal-scorer, was confirmed as captain after a frustrating, injury-hampered season for English club Nottingham Forest.
"It'll be an absolute privilege to be leading the side out as captain at this year's World Cup ... and hopefully create some history," the 34-year-old said in a video at the naming ceremony.
Wood will hope for goal-scoring support from forwards Callum McCowatt, Jesse Randall and Ben Waine.
Kosta Barbarouses was included despite a forgettable season for A-League club Western Sydney Wanderers, the 36-year-old winger earning a place after missing out on selection for 2010.
It has been a long journey for 74-cap Barbarouses, who was a member of three failed World Cup campaigns and was sent off for a rash challenge during a 1-0 playoff defeat by Costa Rica that ended New Zealand's hopes of qualifying for Qatar 2022.
New Zealand FIFA World Cup squad:
Goalkeepers: Max Crocombe (Millwall FC), Alex Paulsen (Lechia Gdansk), Michael Woud (Auckland FC)I
Defenders: Tyler Bindon (Nottingham Forest), Michael Boxall (Minnesota United FC), Liberato Cacace (Wrexham AFC), Francis de Vries (Auckland FC), Callan Elliot (Auckland FC), Tim Payne (Wellington Phoenix), Nando Pijnaker (Auckland FC), Tommy Smith (Braintree Town), Finn Surman (Portland Timbers)
Midfielders: Lachlan Bayliss (Newcastle Jets), Joe Bell (Viking FK), Matt Garbett (Peterborough United), Ben Old (AS Saint-Etienne), Alex Rufer (Wellington Phoenix), Sarpreet Singh (Wellington Phoenix), Marko Stamenic (Swansea City), Ryan Thomas (PEC Zwolle)
Forwards: Kosta Barbarouses (Western Sydney Wanderers), Elijah Just (Motherwell FC), Callum McCowatt (Silkeborg IF), Jesse Randall (Auckland FC), Ben Waine (Port Vale FC), Chris Wood (Nottingham Forest)