Borussia Dortmund attacker Marco Reus was surprisingly left out due to injury.
Löw also opted to drop Bayer Leverkusen pair Karim Bellarabi and Julian Brandt. Hoffenheim's Sebastian Rudy was left off the team as well.
Euro 2016 is the second straight tournament that Reus, who got the unfortunate news on his 27th birthday, will miss because of fitness concerns. He was also cut from the 2014 World Cup-winning side after picking up an injury in a pre-tournament friendly.
"At the moment [Reus] can only run straight ahead," Löw told reporters when announcing the squad. "It's a bitter decision for us and for him. He would have been a valuable asset."
Captain Bastian Schweinsteiger had an injury scare of his own heading into the team's training camp in Ascona, Switzerland. The Manchester United midfielder suffered a serious injury while training with the national side in April and has not played since. Ultimately, however, Löw opted to take him and another player with injury worries - Bayern Munich-bound defender Mats Hummels.
"The doctors confirmed that Bastian Schweinsteiger and Mats Hummels will be able to play at the tournament," Löw said.
Striker Mario Gomez will be playing for Germany at a tournament for the first time since Euro 2012. Injuries and a dip in form had cost him a spot on the 2014 World Cup team, but a strong season at Besiktas has seen him return to the fold.
While Reus' absence will surely be a painful one for the team and fans alike, Löw's squad selection has given a big opportunity to a number of young players. Josha Kimmich, Julian Weigl and Leroy Sane will all be playing for Germany at an international tournament for the first time. They have less than five caps between them, but their good form in the Bundesliga has seen them included in the final roster.
Löw's side suffered a surprise 3-1 loss at home to Slovakia in their most-recent friendly in Augsburg on Sunday. They play Hungary in Gelsenkirchen on June 4 in their final match ahead of the Euros.
Germany kick off their Euro 2016 campaign against Ukraine on June 12.
The full squad:
Goalkeepers: Manuel Neuer (Bayern Munich), Marc-Andre ter Stegen (Barcelona), Bernd Leno (Bayer Leverkusen).
Defenders: Jonas Hector (Cologne), Benedikt Höwedes (Schalke), Shkodran Mustafi (Valencia), Antonio Rüdiger (Roma), Emre Can (Liverpool), Jerome Boateng (Bayern Munich), Mats Hummels (Borussia Dortmund)
Midfielders: Sami Khedira (Juventus), Toni Kroos (Real Madrid), Mesut Özil (Arsenal), Andre Schürrle and Julian Draxler (both Wolfsburg), Thomas Müller and Joshua Kimmich (both Bayern Munich), Julian Weigl (Borussia Dortmund), Lukas Podolski (Galatasaray), Bastian Schweinsteiger (Manchester United).
Strikers: Mario Götze (Bayern Munich), Mario Gomez (Besiktas), Leroy Sane (Schalke)
His place was never in question. Germany's No. 1 between the sticks is the first name on Jogi Löw's teamsheet. He's one of the world's top goalkeepers, and his sweeper-like defensive abilities make him a key part of the German back line.
Marc-André ter Stegen
The Barcelona keeper only plays in the Champions League and domestic cup competitions. Until he establishes himself as the undisputed No. 1 at the Catalan club, he will have a hard time challenging for Neuer's place in the German team. Löw has long had high hopes for the 24-year-old. Will he be able to make the No. 2 spot his own?
Or will Leverkusen's Bernd Leno stand in his way? Leno and ter Stegen have a well-known, long-standing rivalry that dates back to their time with Germany's youth teams. Unlike his Barcelona counterpart, Leno is the undisputed first-choice goalkeeper at his club - one of the best in the Bundesliga.
Jerome Boateng and Mats Hummels
Boateng (L) and Hummels form the heart of Germany's central defense. They were crucial components of Germany's World Cup-winning side in 2014. Big things are expected of them this summer in France. Their pairing will be a preview of next season's Bayern Munich back line. After starring for Borussia Dortmund, Hummels opted to join the Bavarian giants and team up with Boateng at the club level.
Benedikt Höwedes and Jonas Hector
Outstanding fullbacks are a rare commodity in German and European football, which made the international retirement of Philipp Lahm tough for German fans to take. Germany are entering a major international tournament without their former captain for the first time in 14 years. On the left, Cologne's Jonas Hector, on the right, Schalke's Benedikt Höwedes, a starter at the 2014 World Cup.
You can never have enough fullbacks. Emre Can can play across the entire back line but is often employed most succesfully at club side Liverpool in defensive midfield. Versatility is particularly valuable at international tournaments and Can provides plenty of it.
Antonio Rüdiger and Shkodran Mustafi
Roma's Antonio Rüdiger (R) can play as a fullback or in central defense. Fellow defender Shkodran Mustafi of Valencia is much more comfortable in the middle, but has played on the outside as well. Mustafi was initially left off Löw's 2014 World Cup squad, but following Marco Reus' injury ended up becoming an important member of the winning side.
Toni Kroos and Sami Khedira
They are the heartbeat of Germany's midfield. Khedira has found new life this season at Juventus, while Toni Kroos is coming off a Champions League-winning season with Real Madrid. They formed partnership that brought the Germans World Cup glory, and are in just the right kind of form to help Germany continue their winning ways in France.
Lukas Podolski and Bastian Schweinsteiger
Poldi and Schweini burst onto the national team scene at Euro 2004, and have been at every major tournament since. It remains to be seen how much they will play in France. Podolski has been a peripheral figure in recent years, while Schweinsteiger is recovering from an injury. It is clear, however, that Löw sees them as vital members of the squad as a whole.
Former Bayern Munich coach Louis van Gaal famously once said that "Müller always plays." That motto also holds true for the national team. A player as versatile and effective as Müller is certainly first choice.
Götze has struggled to find his feet at Bayern Munich, but he remains a key figure in the national team. A strong tournament by the man who scored Germany's 2014 World Cup-winning goal could help generate interest from teams from abroad - and rejuvenate his club career.
He has been criticised for his inconsistent play at Arsenal, but Mesut Özil is no doubt one of the most important - and talented - players on the German team. His playmaking ability is vital to the national side, and could help determine Germany's success in France.
After a strong season in Turkey with Besiktas, "Super Mario" is back. The striker will be playing his first tournament for Germany since Euro 2012.
Leroy Sane has continued to improve at Schalke, and Löw has taken notice. The 20-year-old attacker is a new face on the national team, but Euro 2016 could be his chance to show non-Bundesliga fans just how good he has become.
Kimmich became a favorite of Pep Guardiola's in his debut season at Bayern this year. He is capable of playing in midfield or defense, but Löw is more likely to use him in the former.
Thomas Tuchel made the young Weigl a crucial part of his central midfield at Borussia Dortmund this season. After starring in Germany's second tier with 1860 Munich, Weigl showed he was more than capable of playing at the highest level. While his club teammates Matthias Ginter, Marcel Schmelzer and Erik Durm were overlooked, Weigl has been slotted straight into the Euro 2016 squad.
Despite an up-and-down season this year with Wolfsburg, Draxler is in the squad. His attacking ability and role in the 2014 World Cup have surely earned him Löw's trust.
Schürrle also struggled at times this season with Wolfsburg, but he is a consistent performer with the national team. He finished the Bundesliga season well. Can he carry that form into the Euros?
"I believe that next to sporting ability, personality is important and players being able to contribute off the pitch." That's what Jogi Löw had to say about his squad. Whether will see in France whether his decisions will pay off.