Henson is widely regarded as one of the league's underrated frontcourt defenders. He averaged a seemingly modest 7.0 points and 4.7 rebounds in 18.3 minutes per game for the Bucks last season, but also averaged 2.0 blocks per game to rank sixth in the league in that category despite the limited playing time.
Henson, who has been pursued via trade by several interested teams in recent years, also posted a PER well above the league average (18.1) and saw his playing time increase to 25.5 minutes per game in the playoffs.
"I played every role a man could play on this team and in this organization, from not playing, to playing, to starting [and] coming off the bench," Henson said. "It's good for me. I kept my head down and stayed in my lane, so to speak, and I've been rewarded for it."
ESPN.com reported in July that the Bucks and Henson had entered into advanced negotiations on an extension, but the deal took nearly three more months to complete.
The deal will secure Henson, 24, as part of a growing and blossoming core in Milwaukee that includes guards Jabari Parker and Michael Carter-Williams, versatile forward Giannis Antetokounmpo, newly signed center Greg Monroe and re-signed forward Khris Middleton.
"I don't think there's a better situation as far as being a young guy in this league on any team," Henson said. "For them to want me to be a part of this, it's a blessing.
"It's up to us to kind of continue to win games and keep that core together because obviously, you know, winning heals all. That's what we want to keep doing."
The Bucks finished 41-41 last season under first-year coach Jason Kidd despite their youth, and have now cemented a strong six-player core with the addition of Monroe and the long-term deals reached over the past few months with Henson and Middleton.
Kidd called Henson a "true professional" and a great teammate.
"I think it's a well-deserved contract," Kidd said. "You look at the core of our team, keeping him here, securing that just shows the direction we're trying to go."
Information from The Associated Press was used in this report.