The Macron Stadium outfit had been searching for a new coach since Dougie Freedman left by mutual consent earlier this month.
And the Championship's basement club confirmed on Sunday that they had handed the job to Lennon, who won three league and two cup titles during his time in the Celtic hot seat.
"The extensive list of high calibre applicants demonstrated how those candidates viewed the opportunity to manage the club, even in its present position at the bottom of the Championship table," read a statement. "Following a process of first and second interviews with a shortlist of initial candidates, a unanimous decision was taken by Eddie Davies, Brett Warburton and Phil Gartside.
"The club are delighted and excited to appoint Neil Lennon. He brings with him experience at the highest level and an infectious enthusiasm to take the club forward.
"He will officially take charge of the Bolton Wanderers team from Monday morning in the run up to our upcoming game away at Birmingham City.
"Lennon will be joined by assistant manager Johan Mjallby and first team coach Garry Parker."
