The defender - 1/5 of the collection of Newcastle United players sent to Ibrox on loan in the second half of the 2014/15 season - has caught the eye during two years with Swiss outfit Young Boys in which he has helped them to consecutive titles, ending Basel’s dominance.
Mbabu has also appeared for the Switzerland national team, and the 24-year-old has agreed a four-year deal with the Wolves.
His most notable contribution for the Light Blues was a forgettable performance in the SFA Youth Cup final in 2015.
Mbabu came up against one Kieran Tierney, who had been deployed on the left wing, but the Swiss right-back was hooked at half time as the wee Gers went down 5-2 to their rivals.
Mbabu joins compatriots Renato Steffen - another Young Boys alumnus - and Admir Mehmedi at the Volkswagen Arena.
Speaking to Wolfsburg’s website, Mbabu said: “I’m really looking forward to this new challenge and the adventure in the Bundesliga.
“The facilities at the club are ideal for me to keep improving as a footballer at a high level.”