The striker has signed a one-year contract extension at Chelsea prior to joining Crystal Palace as The Blues would like to protect their asset and prevent him from leaving on a free at the end of the season.
The 26-year-old has found game time hard to come by under Frank Lampard, with Tammy Abraham keeping Michy Batshuayi on the bench, and the Belgian was limited to one Premier League start last season.
Batshuayi enjoyed a fruitful loan spell at Palace during the second half of the 2018-19 season, scoring 6 goals in 13 games.
Palace have looked to address their goal-scoring problem this season, with misfiring fellow Belgian striker, Christian Benteke, unable to produce the clinical form he has shown in the past.
The Eagles were the second-lowest goal-scorers in the Premier League last season, with Jordan Ayew carrying the burden of Palace's scoring prowess.
Palace had agreed on a deal for fellow Chelsea player, Conor Gallagher, however, due to the fact teams can only loan one player from a single club, Palace prioritised the signing of a striker during this window.
Batshuayi becomes the third signing of the summer, joining versatile defender, Nathan Ferguson, and exciting playmaker, Eberechi Eze.
Batshuayi had this to say on his return to Selhurst Park, "I feel like I’m home now, so it’s good. But I need to do a good season here, to work a lot with my teammates and I want to do my best here."
"It’s not my first time here. I know the teammates, I know the gaffer, I know how the club works here. For me, it’s the best decision. I'm happy, the coach is happy, my teammates are happy. Let's get to work."
Getting a striker through the door was a big part of Palace’s transfer window. Chairman, Steve Parish, had this to say about Batshuayi’s return, "I am absolutely delighted to welcome Michy back to Crystal Palace. He is a player we’ve long admired, as well as being an immensely popular figure with everyone here during his last successful spell with us."
"With other top European clubs vying for his services it is immensely pleasing that Michy chose to come back to help us up the table as well as cementing his place in the Belgium squad for next summer's Euros."