The 21-year-old moves for an undisclosed fee and has signed a three-year contract at Easter Road.
Manager Steve Bruce said: "We accepted an offer and we wish the boy the best of luck."
After starting his career with Arsenal, Stokes netted 14 league goals for Falkirk before joining the Black Cats in January 2007.
But the striker found it difficult to break into the first-team and made just 16 starts and 22 substitute appearances, scoring five goals.
Last season, the Irishman went out on loan to Championship club Sheffield United where he failed to score in 12 appearances. But he found the net on loan at Crystal Palace after playing 13 times for Neil Warnock's side.
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