The Black Cats had been searching for competition up front and identified the 23-year-old as a target during the window.
Broadhead signed a new two-year contract at Everton earlier this summer, and was tipped to receive more first-team opportunities this season.
However, the attacker has now signed on loan at the Stadium of Light until the remainder of the season.
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Speaking on his Instagram, Broadhead said: “Happy to have signed on loan at @sunderlandafcofficial.”
The post prompted messages of support from figures at his parent club Everton.
England and Toffees striker Dominic Calvert-Lewin stated: “All the best Broady,” whilst teammate Tom Davies added: “Good luck Broady!!”
New signing Demarai Gray also said: “Good luck bro,” and Jonjoe Kenny posted: “All the best lad.”
Back in April, Everton Under-23s boss David Unsworth told the Liverpool Echo: “Broady is a great player at this level, him and Josh Bowler, two great players and great young talent.
"I think timing in development football is everything. Right place, right time, taking your opportunities, it's what it's all about.
"Someone gets injured, which you don't like, but then being available. Sometimes you don't go on loan and you get a chance, sometimes you do go out on loan, it's just one of those things.
"Nathan didn't go on loan in January but has been training with the first-team and has been on the bench.”