Standing at 3ft 7in tall, James, from Colwyn Bay, was born with diastrophic dysplasia, which is known as dwarfism.
When he was three-years-old he needed a major operation on his neck and then had another operation at seven where he started using lizeroth frames to straighten his legs.
Now he is able to live his life as normal and now he will be carrying the Olympic torch in Rhos-on-Sea when it travels through Wales from 25-30 May.
James, 23, was nominated by a friend after they met at the Beijing Paralympics in 2008 on the young advocate programme run by the British Council.
"I'm really excited about it and looking forward to the day," he said.
"It's quite an amazing privilege because the guy who nominated me I met in Beijing at the Paralympic Games. He's in London, I am in north Wales.
"It's quite touching.
"Whenever I see him, during the couple of days we are together, he always says I'm an inspiration to him and drives him to carry on with his life.
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"I've always accepted the way I am and I strongly believe God made me the way I am.
"That's why I live the dream and don't let things get me down."
James is a member of the Dwarf Sports Association and won the association's junior sports personality three times and held the British Class 1 badminton champion within the DSA for nine years.
In nominating James, friend Russell Swannack praised him for his work within disability sport.
"James has worked extremely hard to encourage others to become involved in disability sport and particularly dwarf sport," he said.
"He went to the Beijing Paralympic Games in 2008 to empower others and this is where I was fortunate enough to meet him and be inspired by a truly incredible person who I can now call my friend.
"Carrying the Olympic torch would be a dream come true for James."
James Lusted has overcome a number of difficulties in his young life.