Mukiele has signed a five-year contract at the Parc Des Princes to become PSG's fourth summer signing.
Christophe Galtier's side have already added FC Porto midfielder Vitinha, Hugo Ekitike and made Nuno Mendes's loan move from Sporting Lisbon permanent.
Mukiele joined RB Leipzig from Montpelier in the summer of 2018 and made 145 appearances for the club, scoring 10 goals and providing 11 assists in that time.
The 24-year-old who is able to play at right back and central defence, won the DFB-Pokal with Leipzig last season.
Speaking to PSG's official website after the move was confirmed, Mukiele said: "Playing for your hometown team is obviously a dream.
"I grew up in the Paris region, in Montreuil to be more specific, so playing for Paris is a massive honour for me, for my friends and for my family, and I'm really happy to have worked so hard to be here today."
"When I found out that Paris were interested in me and that they wanted me to come here, I obviously gave it some thought because it was really important.
"This is a huge step in my career. It's not a choice to be taken lightly, but I think and I'm sure that I made the right one."
Mukiele has won one cap for the France national team.