The Monaco forward, who spent last season on-loan at Manchester United, completed another loan move to the Stamford Bridge, with the option to make the deal permanent.
Falcao scored just four goals for United last season in 29 appearances for the Old Trafford side, and he will now link up with Thibaut Courtois, Filipe Luis and Diego Costa, whom he played along with at the Vincent de Caldron before switching to French Ligue 1.
Croatian midfielder Mario Pasalic, 20, goes the other way on loan for the season.
"I am very happy to be joining Chelsea and can't wait to start training," Falcao said.
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