Madhusudanachari was unanimously elected to the post as all parties in the 119-member House supported his candidature.
Protem Speaker K Jana Reddy handed over charge to Madhusudanachari after his unanimous election was formally announced in the House this morning.
He was elected to the Assembly from Bhupalpalli in Warangal district.
He had been a member of the TRS since its foundation in 2001 and is a trusted lieutenant of TRS chief K Chandrasekhar Rao.
He had previously been an MLA of TDP between 1994 and 1999.
He worked in TDP from 1982 to 1995 and subsequently sailed with NTR-TDP (Lakshmi Parvati) after change of guard in the party.
Telangana Chief Minister K Chandrasekhar Rao and leaders of opposition parties congratulated Madhusudanachari on his election as Assembly Speaker.