West Brom did not reveal how much they paid for the 27-year-old, but British media reports put the fee at around £7 million ($9 million, 7.6 million euros).
Gibbs came through the youth ranks at Arsenal, but having played regularly between 2012 and 2015, he subsequently found himself on the fringes of the first team.
"I watched the boys in the first few games of the season and they've got a lot of energy," Gibbs said in comments published on the West Brom website.
"They've made some good signings and I feel this is a good move for me."
Gibbs, who won the last of his 10 England caps in 2015, follows Jay Rodriguez, Ahmed Hegazi, Gareth Barry, Zhang Yuning and Oliver Burke in signing for West Brom during the current transfer window.
"Kieran's a good age and has made over 200 appearances for Arsenal, represented his country and has Premier League and Champions League experience," said West Brom manager Tony Pulis.
"To add these qualities to our squad is exactly what we're looking for."
Gibbs also posted a personal message on Twitter, describing his time at Arsenal as "a dream" and thanking manager Arsene Wenger, the staff, his teammates and the club's fans.
Albion also signed Poland midfielder Grzegorz Krychowiak on a season-long loan from Paris Saint-Germain on Wednesday.
The 27-year-old boasts two Europa League winners' medals from his time at Sevilla and has 45 caps for his country.
He also helped PSG win three trophies last season.
"I had a lot of propositions from Spain and Italy. But this is a very ambitious club. There's a good atmosphere here," Krychowiak said.
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