The former Marseille man spent the first half of this season on loan with Valencia from his parent club Chelsea, with whom he saw little game time.
The 25-year-old had been closely linked to Everton and Tottenham during this transfer window, with both sides lacking a consistent front man.
However, it was Roy Hodgson who got the signature of the Belgian, who will be looking to improve on his tally of just one goal this season, albeit with few starts in La Liga.
Batshuayi has demonstrated his qualities in previous seasons, particularly with Borussia Dortmund where he netted seven goals in ten matches for the German side.
Steve Parish, the Crystal Palace chairman, said of the signing “Michy is a player we’ve long admired”. “He will be a magnificent addition to our squad”.
Palace have enjoyed good performances in recent weeks and with a top finisher as their striker, more excellent results are sure to come.