The 26-year-old has 16 caps for Holland and played for Cottagers boss Martin Jol during his time at the Ajax helm.
Emanuelson is a left-sided player that can play at either full-back or in midfield and will stay with Fulham until the end of the 2012-13 season.
"It is not easy to get players from AC Milan on a permanent basis," Jol said of him after Fulham's 3-1 defeat of West Ham last night.
"I coached him at Ajax. He is a skilful player, very agile. He is very mobile, quick.
"He can play left midfield, wide, play number 10 so I feel we need fresh legs."
The appreciation seems to be a mutual one, with Emanuelson talking highly of the role Jol has played in his career.
"I'm really looking forward to the time I will be here," he told his new club's official website.
"Martin Jol helped me a lot in my progression when I was learning the game and, because of him, it was an easy choice for me to come here.
"He has a lot of faith in me and I have a lot of faith in him. I met the group and it looks like a great group of players, they were having fun in training and I'm looking forward to getting involved.
"I am happy to have the chance to play in the Barclays Premier League and I will give everything to help the team."