The current Scotland defence specialist wrapped up his responsibilities with Gregor Townsend’s squad during their summer campaign and will officially begin his role with his homeland on 1 September.
At 45 years old, the former flanker for Neath and the Ospreys was still contracted with Scotland, but the Welsh Rugby Union (WRU) negotiated his release.
While the full terms of Tandy’s deal with Wales remain undisclosed, the WRU has confirmed he will lead the team through at least the 2027 World Cup in Australia.
"Becoming head coach of my home country is a massive honour and a privilege," said Tandy.
The WRU had been searching for a long-term replacement following Warren Gatland’s resignation during the Six Nations in February.
Cardiff boss Matt Sherratt stepped in as caretaker coach for the remainder of the championship and then continued in the role for the summer series in Japan.
Tandy’s debut as head coach will come in a clash against Argentina in Cardiff on Sunday, 9 November, followed by autumn internationals against Japan, New Zealand, and South Africa.
He becomes the first full-time Welsh-born head coach of the men’s national side since Gareth Jenkins was dismissed in September 2007. Since then, other Welsh figures—Nigel Davies, Robin McBryde, and Rob Howley—have taken on interim duties.
Tandy takes charge of a national side grappling with significant challenges, as Welsh rugby navigates a turbulent period.
Wales briefly fell to a historic low of 14th place in the global rankings this July before climbing back up to 12th, their current position.
The team had endured a record-breaking slump of 18 consecutive Test losses, a 21-month winless stretch that finally ended with a triumph over Japan in Kobe earlier this month.
"I am looking forward to playing a role in the rebuilding phase of Welsh rugby and taking the national team back to competing with the best countries in the world," said Tandy.
"I am excited about the potential of Welsh rugby and the group of young, hard-working players we have.
"The autumn fixtures represent a huge opportunity and give us a chance to test ourselves against some of the best teams in world rugby."
READ MORE: Steve Tandy Will Stick With Scotland For Another Three Years