He is the second South African, after Schalk Burger, to pick up the most prestigious award on the Rugby calendar.
South Africa were named IRB Team of the Year and Jake White won the IRB Coach of the Year award, to add to the IRB Rugby World Cup crown they claimed at Stade de France against England on 20 October.
Habana was picked ahead of four other nominees - Argentina centre Felipe Contepomi, New Zealand flanker and 2006 IRB Player of the Year Richie McCaw, French centre Yannick Jauzion and Argentina fly half Juan Hernandez.
Habana has scored 13 tries in 10 internationals during 2007, including four tries during RWC 2007.
The winners were selected by the Awards' independent panel of judges, made up of former internationals with over 500 caps between them. The Awards panel deliberated on every major Test match played this year starting with the first Six Nations match and finishing with the IRB Rugby World Cup final.
Full list of IRB Awards winners
IRB Player of the Year - Bryan Habana, South Africa
IRB Team of the Year - South Africa
IRB Coach of the Year - Jake White, South Africa
IRB Under 19 Player of the Year - Robert Fruean, New Zealand
IRB Sevens Team of the Year - New Zealand
IRB Sevens Player of the Year - Afeleke Pelenise, New Zealand
IRB Women's Personality of the Year - Sarah Corrigan
IRB Referee Award for Distinguished Service - Dick Byres
Vernon Pugh Award for Distinguished Service - Jose Maria Epalza
IRB Development Award - Jacob Thompson
Spirit of Ruby Award - Nicolas Pueta
IRPA Try of the Year - Takudzwa Ngwenya, USA
IRPA Special Merit Award - Fabien Pelous, France
IRB Hall of Fame inductees - Pierre de Coubertin, Wilson Whineary, Dr Danny Craven, Gareth Edwards, John Eales