Dhanda, a 19-year-old winger and midfielder who has represented England at youth level, has signed a two-year deal at the Liberty Stadium.
The youngster spent five years with the Anfield club after joining from West Brom at the age of 14, but hopes to make his senior debut in the Championship with his new team.
"I wasn't really getting a chance at Liverpool and I wanted to come somewhere where I hope I will have a better chance to play in the first team," said Dhanda of joining the managerless outfit.
"I want to show what I can do. Once I knew Swansea were interested, I felt the club would suit me. I have watched the football they have played over the years and I hope coming here will bring out the best in me.”
After scoring seven goals for Liverpool’s Under 18s last year, Dhanda was a regular at U23 level and netted five in the Premier League 2 this term.
Jurgen Klopp highlighted Dhanda's "really good attitude" as he made an impression on the coach during the senior side's training camp at the start of the year.
Swansea finished 18th in the Premier League this season, leading to coach Carlos Carvalhal's departure last week.