The deal becomes the fifth major signing of the summer for Bayer Leverkusen, joining Kevin Volland, Danny da Costa and Austrian team-mates, Ramazan Özcan and Julian Baumgartlinger.
Five-year deal for the Austrian
Dragovic, who was part of Austria's disappointing Euro 2016 display, signed a five-year deal with the Bundesliga side on Tuesday and could be ready to make his debut in the Bundesliga opener against Borussia Mönchengladbach.
The 25-year old impressed while with Dynamo Kiev in Ukraine and has earned his move to one of the biggest clubs in Germany. Dragovic was subject to interest from Premier League champions Leicester City but now has a chance to prove his worth with the Bundesliga side.
Dragovic "Excited for the Bundesliga"
The former Basel defender spoke about the move, saying, "[Dynamo] Kiev was an important step for me, but for now I'm excited for the Bundesliga, one of the best leagues in the world."
He added, "That I can join German giants and Champions League hopefuls Bayer, and also play with my [Austria] team-mates Julian Baumgartlinger and Ramazan Özcan, is fantastic."
Despite being only 25, Dragovic brings Champions League experience to his new club, having played with both FC Basel and Dynamo Kiev. The defender has also won five league titles in his young career and will be hoping he can contribute to challenging the dominant force of Bayern Munich.
Bayer Leverkusen's summer transfer window has been nothing short of impressive and the signing of Dragovic strengthens the centre of defence alongside the highly-rated Jonathan Tah, as well as giving them a great chance to battle at the top of the table.
With both young defenders already showing their quality, Bayer may have two great centre-halves for the coming years.