The England U21 defender made his Premier League debut for the club in the 2013/14 season and is now eager to kick on and push for a first team place under Roberto Martinez.
"It's an honour to commit my long-term future to Everton," he told the club's official website.
"I've been made to feel very welcome at the club since I signed my scholarship six years ago. Over the years, I have grown to have an affinity with the club and I feel a sense of belonging here.
"Under the manager, the future looks bright and positive and I want to be a part of that. It is a great club to be a part of and the staff and supporters have been great with me from day one."
BREAKING: @luke_garbutt signs new five-year deal at Everton. http://t.co/k68qYUXRKK
— Everton (@Everton) June 30, 2015