The 20-year-old midfielder is now on board until at least June, 2029.
He does so at a time when his versatility is being further explored as Fabian Hurzeler gives him a more advanced role.
Hurzeler likes him defending from the front in tandem with the equally conscientious Danny Welbeck.
Hinshelwood is best know as a central or deep-lying midfielder but helped England under-21s to Euro glory last summer playing as an inverted left-back for Lee Carsley.
Hinshelwood underlined his potential as a goal scorer with three in the last two games last season and has had chances to have netted more often this term.
Now Hurzeler has looked for a different dimension.
Hinshelwood said: “I’ve shown that I can play in these positions and hopefully I can be reliable wherever I’m put on the pitch, so I think he has put a lot of trust in me, especially over the last few games.
“I try to do it with energy and the gaffer wants us to press and make the game intense and me and Danny have definitely done that.
“One thing I can guarantee is, every time I step on the pitch, I’m going to leave anything out there.”
Hinshelwood scored the winner at home to Brentford this season and has had chances to add to that.
He officially has two Prem assists this term although that does not include the cross which led to Welbeck’s strike at Brentford in the first game the two combined.
Albion are preparing for their first trip to Sunderland since October, 2024, which was six months before Hinshelwood was born.
He celebrates his 21st birthday next month on the day Albion play Burnley at Turf Moor, scene of his dad Adam’s senior league debut for the Seagulls in a 3-1 win at the start of the 2002-03 season.