The 46-year-old Edouard Philippe is relatively unknown to voters, also making good on Mr Macron's campaign promise to repopulate French politics with new faces.
Philippe is a member of the Les Républicains party and is close to Alain Juppé, the former Prime Minister who endorsed Macron after he won the first round of the presidential election.
Macron announced Philippe's appointment on Monday, his first day in office after his inauguration on Sunday.
Edouard Philippe, mayor of the northern port city Le Havre, is not from the president's own party but from the moderate wing of the centre-right Republicans party.
His age reinforces the generational shift in France's corridors of power and the image of youthful vigour that Mr Macron is cultivating.
Mr Philippe's appointment, has lead Mr Macron to pass over loyal followers such as former Socialist Richard Ferrand who was one of the first to join Macron's cause previous year and is secretary general of REM. "On the other hand, a score of conservative politicians called on their political family to respond positively to this 'outstretched hand" of French President Macron, referring to the decision to place a right-wing leader as a prime minister.
The naming of a new prime minister has been Mr Macron's first big appointment following hours of restless speculation in France.
Philippe has been a member of the Union for a Popular Movement and later the Republicans.
The mayor of Le Havre since 2010, Mr Philippe previously worked as a director of public affairs for French nuclear group Areva from 2007-2010 and as a lawyer from 2004-2007 with New York City-based global law firm Debevoise and Plimpton LLP.