The 30-year-old skippered Australia to World Test Championship and World Cup triumphs last year.
But it will be Cummins' first stint as captain in the IPL, which begins on March 22. He replaces South African Aiden Markram.
Hyderabad, who won the title in 2016 under David Warner, announced the news on X, formerly Twitter.
The fast bowler Cummins briefly broke an IPL auction record when Hyderabad paid 205 million rupees ($2.5 million) for his services at auction in Dubai last year.
Hyderabad, who finished bottom of the 10-team table in 2023, start their campaign against Kolkata on March 23 at Eden Gardens.
