The 49-year-old Austrian replaces Roy Hodgson, who stepped down on Monday so Palace could “bring forward their plans to appoint a new manager at the end of the season”.
Palace are 15th in the Premier League after 10 defeats in the past 17 games.
Glasner has signed a contract until June 2026 and will be in charge for Saturday’s home game against Burnley.
He was pictured watching Tottenham’s defeat by Wolves on Saturday, with Spurs hosting Palace on 2 March.
Hodgson’s coaches Ray Lewington and Paddy McCarthy were in charge of Palace for Monday’s 1-1 draw at Everton which Glasner, who is yet to appoint his backroom staff, watched from the Goodison Park stands.
“I am very happy to join Crystal Palace,” said Glasner.
“I am looking forward to working with the talented squad, meeting the club’s supporters and experiencing the Selhurst Park atmosphere I have heard so much about.
“It has been a pleasure to meet with Steve [Parish, chairman] and Dougie [Freedman, sporting director], and I am looking forward to working with them to achieve our goals.”
“I’m delighted to welcome Oliver to the club,” said Parish. “He has an outstanding record, and we believe he is the right manager to take the club forward at this pivotal stage.
“Wherever Oliver has gone so far in his managerial journey, success has been quick to follow, and we believe his ambition, as well as his exciting and attacking approach is the perfect fit for getting the most from our talented young squad in the remainder of this Premier League season and beyond.”
The former defender spent 19 years as a player at Austria side SV Ried, before starting his managerial career at the club.
He moved to LASK after one season, spending four years in charge, before a move to German club Wolfsburg.
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