Ebiowei moves to Bloomfield Road on a two-year contract, with Blackpool holding the option for a further year.
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The winger joined Palace from Derby County, but only played five games with the Eagles.
Ebiowei admits he's happy to be playing for Pool manager Steve Bruce.
“He’s got so much experience and he’s someone I am very grateful to work under,” he said.
“The conversations me and him have had were nothing but positive. He’s shown me how he is going to push me while also letting me play my style. That was the main reason I wanted to come here as he gave me so many assurances and already believes in me so much.”