The ex-Wallace High School pupil signed a development contract in 2006 before agreeing his first professional contract in 2007.
Commenting on his new three-year deal, Henry said: "I am delighted to have committed to Ulster for the long-term. This squad is getting better and better.
"We have experience, as well as young players coming through who are proving that they can perform at the very highest level.
"It is a great team to be a part of and there is no doubt that when it comes to winning silverware - we have some unfinished business to do.
"From a personal point of view, I want to win more caps for Ireland and my aim is to be part of the World Cup squad in 2015. In my opinion, being at Ulster gives me the best chance to fulfill that ambition."
Ulster's director of rugby David Humphreys added: "Chris has been a cornerstone of our success in recent years. His performance against Montpellier typified what he brings to the Ulster team, namely - commitment, intensity and ferocity at the breakdown.
"It would be hard to find anyone who is more passionate about playing for Ulster than Chris Henry and I am extremely pleased that he will be part of the squad until at least 2017."