Marina Picasso has already received an offer of 150 million euros for La Californie, the luxurious Riviera villa and studio where the Spanish-born artist lived and worked during her childhood, she told the Nice-Matin regional newspaper on Saturday.
"It will be a way for me to turn the page on a rather painful experience," she said, adding that the house does not hold many fond memories for her.
Marina saw little of her grandfather, who was living with his last partner, Jacqueline, when she was a child.
The sale will serve to raise funds for her humanitarian work, she says.
Marina Picasso, who has five children, three of them adopted, has long been involved in philanthropy and financed a village for 350 orphans in Vietnam for 25 years.
Auction house Sotheby's hopes to raise 6-8 million euros in the sale of the Picasso ceramics.
"Of course I'm selling," commented Marina Picasso. "But it's also a way to share."
She intends to use the proceeds of the auction to finance projects for elderly people and teenagers in France.