The 40-year-old joins from his position as academy development coach at Carrow Road. One of his first tasks will be to lead the team in their William Hill Scottish Cup semi-final against Hibernian a week on Saturday.
Holt said: "It's an exciting move for me. I've worked under some good managers and learned a lot. Their advice was always the same - get your coaching badges and work hard. That has proved to be correct."
He continued: "As time went on, I felt that after three years' good experience as a reserve and youth coach, I was ready to make the move into management.
"It was a case of finding the right club at the right time so I am delighted that I have the opportunity to coach Falkirk at this early stage of my management career.
"I was particularly attracted to the infrastructure and academy set-up at Falkirk and working with good young players.
"It may be a cliche but I agree with the sentiments that if you are good enough, then you are old enough."
Falkirk chairman Martin Ritchie admitted Holt's experience of working with young players was crucial.
Ritchie told BBC Scotland: "What we were looking for was someone to continue the work of bringing young players out of the academy and getting them in the first team. But we were also looking for somebody who was very determined, very ambitious, and somebody we felt could take us on and get us back up to the SPL."
Holt, who comes in almost four weeks after Steven Pressley left for Coventry, watched his new team secure a 2-1 win at Livingston last night. Their third consecutive victory, all of which have come away from home, moved them up to third place in the Irn-Bru First Division.
- Sports & Recreation