The 24-year-old England international, who has spent his entire career with the Toffees, apart from two loan spells with Sheffield Wednesday and Leeds United, revealed his delight at the switch, having completed his medical earlier on Friday.
Barkley has not played for seven months after surgery in August, and is eager to get going with the Blues.
He told the Chelsea website: "I'm overwhelmed, I'm looking forward to it and I'm really excited to get started.
"To be given a fresh start at a new club like Chelsea, it's unbelievable for me. I'm looking forward to continuing where I left off at the end of last season and hoping to improve and add more goals to my game."
Club director Marina Granovskaia added: "Ross is a player we have long admired and are certain he will prove to be an important player for Chelsea. He possesses outstanding technical and physical attributes, matched with good experience of the Premier League and a strong desire to succeed at the highest level. We welcome him to the club and look forward to seeing him in action."
Barkley will wear the number eight shirt at Chelsea.
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