We report the detection of pulsations with $sim 124$ s period in V2116 Oph, the optical counterpart of the low-mass X-ray binary GX 1+4. The pulsations are sinusoidal with modulation amplitude of up to 4% in blue light and were observed in ten different observing sessions during 1996 April-August using a CCD photometer at the 1.6-m and 0.6-m telescopes of Laboratorio Nacional de Astrof{i}sica, in Brazil. The pulsations were also observed with the $UBVRI$ fast photometer. With only one exception the observed optical periods are consistent with those observed by the BATSE instrument on board the Compton Gamma Ray Observatory at the same epoch. There is a definite correlation between the observability of pulsations and the optical brightness of the system: V2116~Oph had $R$ magnitude in the range $15.3-15.5$ when the pulsed signal was detected, and $R = 16.0-17.7$ when no pulsations were present. The discovery makes GX 1+4 only the third of $sim 35$ accretion-powered X-ray pulsars to be firmly detected as a pulsating source in the optical. The presence of flickering and pulsations in V2116 Oph adds strong evidence for an accretion disk scenario in this system. The absolute magnitude of the pulsed component on 1996 May 27 is estimated to be $M_V sim -1.5$. The implied dimensions for the emitting region are $1.1 R_{sun}$, $3.2 R_{sun}$, and $7.0 R_{sun}$, for black-body spectral distributions with $T = 10^5$ K, $2 times 10^4$ K, and $1 times 10^4$ K, respectively.
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