The 19-year-old forward, who has scored four goals this season, has cemented his place in the first-team squad with some notable performances this season.
Shaw told the Hibs website: “I’m delighted to have signed and committed my future here at Hibs. It’s a massive club with great staff and a great manager and I am looking forward to continuing working and developing here.
“My goal is to play first-team football regularly here and to hopefully continue scoring goals.
“I’ve had a wee sniff of it recently, so I’m looking forward to getting back at it after the break and hopefully continuing with that.”
Hibs head coach Neil Lennon said: “I am delighted that we have signed Oli on a new deal for the next three years.
“There is a maturity about his play for someone so young, but a rawness as well which makes him difficult to play against. He is a real talent, that’s for sure.
“His performances this season, especially last month, have really impressed me and his goals have been fantastic and shown a lot of the different aspects of the talent he possesses.
“He’s a good kid with a bright future ahead of him if he continues to work as hard in training and in games as he has done so far this season.
“To have Oli, as well as Ryan and Fraser, come into the first-team squad so seamlessly speaks volumes of the work that Eddie May and the rest of the Academy staff have been doing over the past few years. Long may that continue.”