Meunier has signed a four-year contract and will move to the Signal Iduna Park when his contract with the French champions expires at the end of this month.
Alongside Thiago Silva and Edinson Cavani, Meunier will depart the Parc des Princes without playing further part in PSG’s involvement in the latter stages of this season’s UEFA Champions League which resumes in August.
Meunier joined PSG from Club Bruges in the summer of 2016 and won three Ligue 1 titles, one Coupe de France and two Coupe de la Ligue.
The 28-year-old Belgium international will join compatriots Thorgan Hazard and Axel Witsel at the club.
"Borussia Dortmund play exactly the football that I want to play: exciting, authentic and natural," Meunier said in quotes published on the Dortmund's website.
"BVB is known for their enthusiastic fans and the atmosphere during the [Champions League] game with Paris at Signal Iduna Park really influenced my decision.
"I am ambitious and, like with Bruges and Paris, I would like to win titles with Dortmund."
Dortmund's sporting director Michael Zorc said: 'Thomas Meunier is a player who has demonstrated his quality at the highest level in the Champions League and in the national team over a long period of time and will really benefit us with his experience.'
Meunier has been capped 40 times by the Belgium national team, scoring seven goals.