The American actress will live with Prince Harry in Nottingham Cottage at Kensington Palace once they are wed next year.
A palace spokesman today said: "His Royal Highness The Prince of Wales is delighted to announce the engagement of Prince Harry to Ms Meghan Markle.
"The wedding will take place in Spring 2018.
"Further details about the wedding day will be announced in due course."
Prince Harry asked Meghan's parents for their blessing to marry daughter Meghan before secretly popping the question earlier this month.
Thomas Markle and Doria Ragland said they are "incredibly happy" with the couple's engagement, adding: "We wish them a lifetime of happiness."
Under strict royal protocol, the Prince also asked the Queen for permission to marry the divorced actress.
In a statement, she and the Duke of Edinburgh today announced they "are delighted for the couple and wish them every happiness".
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