The 20-year-old joins the European champions in a deal worth £25million.
He is part of Brazil's squad for London 2012 and played in the 2-0 warm-up victory over Team GB last Friday.
Doubts had been cast over his move to Stamford Bridge after the Brazil international said he would not to allow the transfer distract him from trying to win Olympic gold
Oscar has been the subject of intense speculation linking him with a move to Stamford Bridge all summer.
He underwent a medical before starring for Brazil against Team GB.
Oscar joined Internacional from Sao Paulo in 2009 and last summer scored a hat-trick in the Under 20 World Cup final as Brazil beat Portugal.
Oscar, full name Oscar dos Santos Emboaba Junior, is a product of the Sao Paulo youth set up.
He left the capital for Internacional in December 2010 and has played at every level of international football from Under 15 to Under 20.
His Brazil debut arrived in September last year when he came on as a substitute in a 0-0 draw with Argentina, and he has scored once in six caps.
Capable of playing as an attacking midfielder or winger, he is viewed as one of his country's most exciting talents.
Meanwhile, Frank Lampard admits Chelsea face a period of adjustment to the influx of new recruits but is excited about the coming season.
Eden Hazard and Marko Marin have already joined the Champions League winners.
Lampard, who is on Chelsea's tour to America, believes Chelsea will benefit from the increased competition for places.
'We proved to be a great team and a great unit in the second half of last season,' he told the club's official website.
'This year maybe we are slightly different because we have more new young players coming in.
'There might not be the settled togetherness that we had on the pitch at that side because we had been together a long time.
'But there is an excitement about our team as well and that's probably the main difference.
'Everyone is trying to impress, and you never lose that in pre-season, there's not one manager I've met yet who will close the door on any player.
'We have to perform at a high level to stay in the team because of the quality of the squad we have.'
He is part of Brazil's squad for London 2012 and played in the 2-0 warm-up victory over Team GB last Friday.
Doubts had been cast over his move to Stamford Bridge after the Brazil international said he would not to allow the transfer distract him from trying to win Olympic gold
Oscar has been the subject of intense speculation linking him with a move to Stamford Bridge all summer.
Done deal: Chelsea have completed the signing of Brazilian Oscar
Oscar joined Internacional from Sao Paulo in 2009 and last summer scored a hat-trick in the Under 20 World Cup final as Brazil beat Portugal.
Oscar, full name Oscar dos Santos Emboaba Junior, is a product of the Sao Paulo youth set up.
He left the capital for Internacional in December 2010 and has played at every level of international football from Under 15 to Under 20.
His Brazil debut arrived in September last year when he came on as a substitute in a 0-0 draw with Argentina, and he has scored once in six caps.
Capable of playing as an attacking midfielder or winger, he is viewed as one of his country's most exciting talents.
Meanwhile, Frank Lampard admits Chelsea face a period of adjustment to the influx of new recruits but is excited about the coming season.
Back in action: Chelsea are currently on tour in America
Lampard, who is on Chelsea's tour to America, believes Chelsea will benefit from the increased competition for places.
'We proved to be a great team and a great unit in the second half of last season,' he told the club's official website.
'This year maybe we are slightly different because we have more new young players coming in.
'There might not be the settled togetherness that we had on the pitch at that side because we had been together a long time.
'But there is an excitement about our team as well and that's probably the main difference.
'Everyone is trying to impress, and you never lose that in pre-season, there's not one manager I've met yet who will close the door on any player.
'We have to perform at a high level to stay in the team because of the quality of the squad we have.'
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