The 22-year-old has left his boyhood club for a seven-figure fee, believed to be £1.2million, to give the debt-ridden Saints a vital cash injection.
The former England Under-21 international has signed a three-year deal at Molineux with the option of a further 12 months.
Surman, who was born in Johannesburg, can operate in midfield or at left-back and joins fellow summer arrivals Kevin Doyle, Marcus Hahnemann and Nenad Milijas in bolstering manager Mick McCarthy's squad.
He told the club's official website: "This is a great move for me and I'm really excited.
"To come to a Premier League club, and one as big as Wolves, is fantastic.
"We'd had a disappointing season at Southampton. I think we had enough quality in the team to be able to do something but unfortunately it all went sour and we ended up getting relegated, which is never nice to have on your CV.
"I'm ready to go again with Wolves. Even though it looks a young side here it's also a very experienced side when you consider how many games they have played."
Surman made 142 appearances for Southampton and scored 18 goals, including a long-range strike at Molineux in March 2007 when Saints ran out 6-0 winners.