Sami Hyypia resigned from his position at the Amex Stadium last week following a dismal run of just one win in 18 matches.
And former Norwich City and Newcastle United boss Hughton has taken over from the Finn, putting pen to paper on a three-and-a-half-year contract on Wednesday.
Hughton is delighted to be back in football after leaving Norwich in April, and believes Brighton - who sit out of the relegation zone solely on goal difference - can avoid the drop to League One.
"I'm thrilled to be back in management and Brighton & Hove Albion is a fantastic club, with a first-class infrastructure both in footballing and business terms," the 56-year-old told the club's official website.
"We've got one very obvious initial challenge, and I am aiming to hit the ground running, but I am confident with the resources at the club we can succeed in retaining our status in the Championship.
“Once that is achieved we can work towards getting the club back challenging at the top end of the division."
Brighton showed an upturn in form following Hyypia's departure, taking four points from games against Reading and Fulham under the stewardship of caretaker manager Nathan Jones.
Hughton's first game in charge comes at high-flying Brentford in the FA Cup third round on Saturday.
