The versatile 18-year-old joined the Seagulls at the age of eight and worked his way through the club's youth ranks before being handed his senior debut by Roberto De Zerbi in May last year.
Hinshelwood has since made 17 first-team appearances for Brighton across all competitions this season, playing in a variety of positions in defence and midfield.
The Worthing-born youngster scored his first Premier League goal in a 2-1 home win over Brentford in December 2023, before netting in 4-2 and 4-1 home victories over Tottenham Hotspur and Crystal Palace respectively.
Hinshelwood is currently sidelined with a foot injury and has been ruled out for the rest of the 2023-24 campaign.
However, Brighton have confirmed that the teenager has committed his future to the club by putting pen to paper on a new four-year deal.
De Zerbi: 'Top player Hinshelwood deserves new deal'
Speaking to Brighton's official website about Hinshelwood's new deal, De Zerbi said, "I am very happy for Jack and for his family, he has shown what a top player he is and he deserves this new contract.
"We miss him a lot and are look forward to having him back fit and ready to play."
Technical director David Weir said, "Jack is a role model and his journey is an inspiring one for all the players in our academy.
"His attitude on and off the pitch throughout his time at the club has been exemplary, the way he has transitioned into the first-team squad was impressive and we are all very proud of his progress.
"Were it not for injury he would have no doubt played a lot more first-team games this season, but we are looking forward to him being back ready for pre-season this summer."
Brighton currently sit 10th in the Premier League table, five points behind the top seven with seven games left to play, including a trip to Burnley on Saturday.