Wijnaldum arrives at St James Park on a five-year contract for an undisclosed fee though Newcastle said it represented their third highest transfer fee after deals involving former England forwards Michael Owen and Alan Shearer.
The 24-year-old made 152 appearance, scoring 56 goals, for PSV following his arrival from Feyenoord in 2011 and captained the club to the Dutch title in 2015.
"I'm delighted to be a Newcastle United player," he told the club's official website (www.nufc.co.uk).
"I felt the time was right for me to move and the club have shown they really want me, so I'm very happy to be here.
"I know the club has a great stadium with great fans. I want to play here as soon as possible. I want to feel the atmosphere and feel the crowd. I cannot wait to get started."
Wijnaldum has won 19 caps for Netherlands and scored their final goal in a 3-0 victory against Brazil in the third-place playoff at last year's World Cup.
Newcastle narrowly avoided relegation from the Premier League last season following an end-of-season slump and have struggled without a creative midfielder since the departure of Yohan Cabaye in January 2014.
Wijnaldum becomes new manager Steve McLaren's first close-season signing.
"This signing is a real statement from the club. It is a big transfer for a very good player and I am delighted to have (him) here," McLaren said.
"He has lots of energy and a great tempo to his game. He is very skilful but is also capable of playing box-to-box, and importantly he can score goals."
PSV also lost winger Memphis Depay this close-season after the 21-year-old Netherlands international joined Manchester United.
(Reporting By Tom Hayward; editing by Sudipto Ganguly)
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