The 22-year-old striker featured in 19 matches across all competitions for the Blues last season, scoring once in the Premier League and netting another goal in an FA Cup victory against Preston North End.
Broja, who is under contract at Stamford Bridge until 2028, has previously had three loan stints away from the club at Vitesse, Southampton and Fulham.
The Albanian international was actively looking for a move this summer after being made aware that he was not part of Enzo Maresca's plans this season, and was asked to train away from the first team.
Everton sign Broja on season-long loan
Newly promoted Ipswich had been in negotiations with Chelsea throughout the summer, with a deal for Broja seemingly on the verge of completion before encountering a setback after concerns about Broja's Achilles were raised during his medical.
Everton swooped in at the last moment for the 22-year-old's signature by presenting a loan offer with a £30m option to buy and managed to complete the deal just before 1am on Saturday morning.
Earlier on deadline day, there was speculation that Toffees' striker Dominic Calvert-Lewin might swap places with Broja at Chelsea, but both players have now become teammates at Goodison Park.
Monaco had also shown interest in the Albania international, and several Premier League clubs had explored the possibility of signing him earlier this summer, though no formal offers were made.
A Chelsea academy graduate, Broja made his debut in 2020 and scored 3 goals in 38 appearances for his boyhood club.
Everton comment on Broja signing decision
Shortly after announcing the signing of Broja, Everton's director of football, Kevin Thelwell, outlined their plan for the striker, expressing confidence that he has untapped potential yet to be realized.
Thelwell said: "Having monitored Armando's journey for a number of years, we're very pleased to have been able to bring him to the club.
"Armando is still a young player who has already built up some impressive experience but someone we also feel has lots more potential to be unlocked.
"First and foremost, we will work with him to get him fit as soon as possible. Then, his addition will strengthen our options in the attacking department."
Everton have yet to score a Premier League goal this season, and manager Sean Dyche will hope that, once fit, Broja's addition will provide the much-needed boost to their attacking prowess.
The Albanian international became the Toffees' eighth and final signing of the summer after Tim Iroegbunam, Jack Harrison, Iliman Ndiaye, Jesper Lindstrom, Jake O'Brien, Asmir Begovic and Orel Mangala.