The Netherlands international has signed a five-year-deal with Wolfsburg, who finished eighth last season in the Bundesliga. Bruma is the club's fifth major signing of the summer and will replace Schalke-bound Naldo.
Wolfsburg have signed a ready-made replacement for Naldo, who joined Schalke this summer, with the capture of PSV Eindhoven defender Jeffrey Bruma.
The 24-year-old centre-back returns to German football after a loan spell at Hamburg between 2011 and 2013. Bruma started his career at Feyenoord before moving to Chelsea, where he made 10 appearances.
He has 19 international caps and collected back-to-back championships in the Netherlands.
"We are delighted that Jeffrey has come to Wolfsburg," said sporting director Klaus Allofs, while head coach Dieter Hecking added that Bruma was a player of "Champions League quality, having proved that last season with PSV."
Neither Wolfsburg nor PSV Eindhoven revealed the transfer fee, but media reports said the deal was worth around 15 million euros.
Hecking's side have been weakened by the departure of the long-serving Naldo, the Brazilian centre-back who made over 150 appearances for the club.
The Wolves have signed five players this summer, including Cologne's Yannick Gerhardt, Stuttgart's Daniel Didavi and Josip Brekalo from Dinamo Zagreb.