The 24-year old midfielder joined Hibs last summer from Aston Villa but has now moved on by signing a one-year deal with the option for a further year at Bloomfield Road.
Osbourne trained under Seasiders boss Ian Holloway when he had a short spell with Leicester City when he was at the helm and he is determined to shine under the gaffer.
"I'm delighted to be joining this club and absolutely buzzing to be here," he told the club's official website.
"I went on-loan to Leicester when I was playing for Aston Villa and I only had one training session under him before I was called back, but he made a big impression on me in a short space of time.
"I got to like him even during that one day and hopefully this time it lasts a little bit longer than the first time.
"I really see myself slotting into the way Blackpool play and I love the style of football that the manager plays."