Traore returns to the Premier League after starting his career with Chelsea, where he spent three years with Villa's current assistant manager John Terry.
Villa sign Lyon forward Traore
Aston Villa signed Burkina Faso forward Bertrand Traore from Lyon for a reported £17 million ($21 million) on Saturday.
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The 25-year-old's signing is another boost to Villa's attacking options after the arrival of Ollie Watkins from Brentford for a club record £28 million earlier this month.
"We're delighted that Bertrand has chosen to come to Villa," manager Dean Smith told his club's website.
"He's a player with immense talent who will really enhance our attacking options."
Villa, who escaped relegation on the final day of last season, have also recently signed Arsenal goalkeeper Emiliano Martinez and Nottingham Forest right-back Matty Cash.
Smith's side kick off their Premier League campaign at home to Sheffield United on Monday.
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