The 26-year-old rejoins the Clarets after a successful loan spell at Turf Moor during the club's last Premier League campaign, in which he netted six goals. He has now committed his future to Burnley by signing a four-year contract. The transfer fee remains undisclosed.
"I'm so happy to be back, to be honest. It's a good feeling," said Bruun, via the club's official website.
"It was a very easy decision for me, once I knew the Club were interested, I just knew that I was ready to come back and sign here permanently.
"I can't wait to run out that tunnel again at Turf Moor in a few weeks and see all the fans again."
Bruun Larsen, who can operate as a winger or wideman, first made his name through the youth ranks at German giants Borussia Dortmund. He made 41 senior appearances for the Bundesliga side before securing a move to Hoffenheim in January 2020.
During his five-season stay at Hoffenheim, the Danish international spent time out on loan, including a stint with Belgian outfit RSC Anderlecht in the 2020/21 campaign, and a notable period at Burnley. He moved to Stuttgart in January 2025 before making a swift return to England this summer.
Known for his pace and direct attacking play, Bruun Larsen will be hoping to build on his previous impact at Turf Moor and help Burnley push forward in the coming season.