Pedersen, 23, becomes Garry Monk's first signing as Blues Manager.BCFC
The left-back has joined on a four-year contract from German side Union Berlin, for an undisclosed sum.
Pedersen, 23, becomes Garry Monk's first signing as Blues Manager.
Born in Ringsted, Denmark, Pedersen spent two seasons in Germany, where he caught the eye of several sides in England and mainland Europe.
Blues beat off significant competition to secure his services.
Pedersen, who stands 6ft 2in tall, made his way up the ranks in his homeland. He was with HB Køge from 2014 until the move to Germany.
Capped five times at Under-21 level, Pedersen has also been used wide left of midfield.
But his strength is at left-back, a position where his size, power and determination have come to the fore in the German second division.
Pedersen played against Blues in their first pre-season friendly in Austria last July, helping Berlin to a 1-0 victory in Wolfsburg.