Both sides were at different ends for a contract extension, but the league's reigning sack leader will now be paid a total of $30 million for the year.
The new deal will make Hendrickson one of the highest-paid defenders in the NFL.
The 30-year-old is coming off back-to-back seasons with 17.5 sacks, earning First Team All-Pro honours this past season for the first time in his career.
In 2024, Hendrickson also set a career high in tackles (46), tackles for loss (19), quarterback hits (36), and pass deflections (6), finishing as runner-up for the Defensive Player of the Year award, which ultimately went to Denver Broncos defensive back Pat Surtain III.
Now, the Bengals have the league's best pass rusher ready to go for Week 1 against the Cleveland Browns on September 7th with no more contract headaches.