The 24-year-old Hawaiian joined HSV from Union Berlin a year ago and scored five goals in his maiden Bundesliga campaign. The performances of the USMNT striker earned him widespread praise, and led to his new four-year deal.
Watch: Bobby Wood's sensational Hamburg debut
"Bobby is a modern, young striker who made the step up from the second division to the Bundesliga with us without any major difficulties," said Hamburg's sporting director Jens Todt.
"It's not only his goals that count for us, but also his willingness to cover ground and put in the effort. Bobby's a key figure in our attack and is a real team player. We're delighted that he wants to continue his development with us and that he's extended his contract."
Wood made an immediate impact on the Bundesliga, scoring with his first shot at goal against Ingolstadt on Matchday 1 of the 2016/17 season. It was a sign of what was to come from the Honolulo-born forward, who helped keep HSV afloat in a difficult campaign.