Osbourne, 24, has penned a one-year deal with the Seasiders which includes the option of a further 12 months, joining for a six-figure fee believed to be in the region of £250,000.
He spent just one season north of the border having moved to Hibs from Aston Villa and is also no stranger to Seasiders manager Ian Holloway, having enjoyed the briefest of spells under him at Leicester.
"Hibernian can confirm that Isaiah Osbourne has joined Blackpool concluding his 11-month stay at Easter Road," the SPL club's official website announced.
"Everyone connected with the club would like to thank 'Ozzy' for his contribution to Hibernian and to wish him all the best for the future."
Osbourne told Blackpool's official website: "I'm delighted to be joining this club and absolutely buzzing to be here.
"I went on loan to Leicester when I was playing for Aston Villa and I only had one training session under him (Holloway) 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."