The 22-year-old striker signed a four-year contract with the German club.
The Swiss professional footballer joined Schalke 04 from Basel in 2016, scoring 10 goals and providing two assists in 48 match appearances.
Speaking about the new signing, Gladbach sporting director Max Eberl said:
We’ve known Breel Embolo for a number of years and continued to track him during his time at Schalke,
He’s had a lot of misfortune with injuries in recent years and obviously we had to take a really close look at his physical condition.
We’re in no doubt we can offer him a fresh start and that he’ll bring us a lot of joy.
He’s quick, strong and a goal threat – and is a great fit for our squad.
Embolo becomes Monchengladbach’s third summer signing.