In addition, Jack McIlhargey was dismissed as an assistant.
Kevin McCarthy, a former Flyer who had been an assistant in Carolina this season, will become one of Laviolette's assistants.
Laviolette, 45, spent four-plus seasons as Carolina's head coach, compiling a 167-122-34 record. He led the Hurricanes to the Stanley Cup in 2006 before being fired last season.
"I believe we need a new voice at this time," Holmgren said, adding that Laviolette brings "more of an offensive push."
Before joining Carolina, Laviolette was the New York Islanders' coach for two seasons, compiling a 77-65-25 record and leading the Isles to two playoff berths.
"I'm very excited to be here," Laviolette said. "When you think about the organizations and the jobs you might want, Philadelphia for me is at the top of the list."
Laviolette, who had been doing some hockey commentary, said he wanted to "pay some respect and thank John Stevens for everything he did here. We traveled a very similar road through the minor leagues and through coaching in the American Hockey League. I know him as a person and coach."
Laviolette said he had a plan to be successful, and when it comes to fruition "everybody should remember that John Stevens had a hand in the path that it took."
A Florida resident, Laviolette smiled as he said he had to resign as an assistant coach of his son's peewee hockey team to accept the Flyers' job. He said his son wasn't happy he had to leave to return to the NHL.
"But it's good, because we weren't really getting along," he said. "He was ready to fire me, and I was ready to trade him."
