The United States international has enjoyed a breakthrough campaign at Signal Iduna Park, making 19 appearances in all competitions and scoring twice.
His season has been littered with links to Liverpool, but Dortmund bosses have long maintained that they intended to tie the 18-year-old to fresh terms.
And they have done just that, with Pulisic signing a new deal that will keep him at Dortmund until 2020.
"I still have a lot to learn," Pulisic said in a statement. "Here at Dortmund are the best conditions for me.
"Here I have the chance to play in front of 80,000 fans. We have the best fans in the world, it could not be better."
Pulisic's standout performance this term came as a second-half substitute against Ingolstatdt, setting up a goal for Adrian Ramos before scoring a stoppage-time equaliser in a thrilling 3-3 draw.
However, the future in Westphalia is bright, with Pulisic's extension confirmed on the same day that Alexander Isak was signed from under the noses of Real Madrid and after Julian Weigl committed his future to the club.
Weigl recently extended his deal until 2021 in the face of reported interest from the Santiago Bernabeu.
"We are very happy to have secured the future of another talented player after Julian Weigl," sporting director Michael Zorc said.
"Christian is already an important figure in the team and, like Julian Weigl, will become a cornerstone of our sporting future."