Dinwiddie was bought out and placed on the waivers following a trade on Thursday that sent him from the Brooklyn Nets to the Toronto Raptors. The Raptors sent back Dennis Schröder and Thaddeus Young in an effort to alleviate cap space.
The 30-year-old guard has played all of his 48 games this season with the Brooklyn Nets, averaging 12.6 points, 6.0 assists and 3.3 rebounds a game while shooting 39.1 per cent from the field and 32.1 per cent from deep.
He now joins a Lakers team that elected to stand pat at the deadline and not make any trades to change the makeup of their team.
He was rumoured to either join the Lakers or Dallas Mavericks following his buyout and was seen sitting with Los Angeles GM Rob Pelinka in their game Friday against the New Orleans Pelicans.
The Lakers are currently 28-26 and sit ninth in the Western Conference.