Hodgson, who replaces the sacked Roberto Di Matteo, gets the chance to forget about his torrid six months at Anfield as he sets about saving West Brom from relegation and living up to the reputation he built as last season's Manager of the Year with Fulham.
"It was not my intention to return to Premier League football this quickly," the 63-year-old told the Albion website after committing to the club until June 2012.
"But I was so impressed by the way the chairman (Jeremy Peace) and (technical director) Dan Ashworth sold the project to me that I was very happy to accept the offer."
Despite his success at Fulham he failed to win over Liverpool fans when he was appointed Rafa Benitez's successor last July as many thought he did not have the pedigree usually associated with the 18-times English champions.
During Hodgson's spell at Anfield the club won only seven of 20 league games and spent much of the time in the bottom half of the table.
Hodgson should not struggle with the supporters in the same way at West Brom, with Internet fan forums featuring comments welcoming a "good appointment" and a "safe pair of hands."
"At such a vital stage of the season we felt it was important we identified and appointed the right man as quickly as possible," said Peace before adding Hodgson was the board's unanimous first choice.
"We believe his vast experience and knowledge of the game is exactly what we need for the challenge we face, both in the short and long term."
Hodgson will not be in charge for Saturday's match with West Ham as caretaker manager Michael Appleton is at the helm for the relegation clash.
