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The France Under-21 international has put pen to paper on a massive seven-year deal at Stamford Bridge.
Fofana becomes the latest in a series of recruits for Thomas Tuchel during a busy transfer window, with Raheem Sterling, Kalidou Koulibaly and Marc Cucurella already key men.
The new centre-back had been training with Leicester's under-23 squad after making his intentions of joining Chelsea clear as Brendan Rodgers said he was not in the right frame of mind to play in a 2-1 Premier League defeat away to the London club on Sunday (AEST).
Settling in! 🏡#FofanaIsChelsea pic.twitter.com/NhbEWkdadm— Chelsea FC (@ChelseaFC) August 31, 2022
Leicester reportedly rejected three bids from Chelsea for Fofana, but the Blues finally got their man on Wednesday.
"The two last days have been really big days for me and I'm very happy," Fofana said.
"I trained this morning with the team and it's a dream for me. I'm very excited to start playing games for the fans and the club.
"I'm here to win trophies – the Champions League, Premier League, FA Cup, Carabao Cup, everything. I came here to win and the club is built to win trophies, so I'm here to continue that."
The 21-year-old missed most of last season after suffering a broken leg and medial ligament damage during a pre-season friendly against Valencia.
Fofana made 28 appearances in the previous campaign as Leicester narrowly missed out on Champions League qualification.