The Large Area Telescope (LAT) on board the Fermi Gamma-ray Space Telescope discovered a rapid (∼ 5 days duration), high-energy (E > 100 MeV) gamma-ray outburst from a source identified with the blazar PKS 1502+106 (OR 103, S3 1502+10, z=1.839) starting on August 05, 2008 (∼ 23 UTC, MJD 54683.95), and followed by bright and variable flux over the next few months. Results on the gamma-ray localization and identification, as well as spectral and temporal behavior during the first months of the Fermi all-sky survey are reported here in conjunction with a multi-waveband characterization as a result of one of the first Fermi multifrequency campaigns. The campaign included a Swift ToO (followed up by 16-day observations on August 07-22, MJD 54685-54700), VLBA (within the MOJAVE program), Owens Valley (OVRO) 40m, Effelsberg-100m, Metsähovi-14m, RATAN-600 and Kanata-Hiroshima radio/optical observations. Results from the analysis of archival observations by INTEGRAL, XMM-Newton and Spitzer space telescopes are reported for a more complete picture of this new gamma-ray blazar. PKS 1502+106 is a sub-GeV peaked, powerful flat spectrum radio quasar (luminosity at E > 100 MeV, L γ , is about 1.1 × 10 49 erg s −1 , and black hole mass likely close to 10 9 M ⊙ ), exhibiting marked gamma-ray bolometric dominance, in particular during the asymmetric outburst (L γ /L opt ∼ 100, and 5-day averaged flux F E>100 MeV = 2.91 ± 1.4 × 10 −6 ph cm −2 s −1 ), which was characterized by a factor greater than 3 of flux increase in less than 12 hours. The outburst was observed simultaneously from optical to X-ray bands (F 0.3−10 keV = 2.18 +0.15 −0.12 × 10 −12 erg cm −2 s −1 , and hard photon index ∼ 1.5, similar to past values) with a flux increase of less than one order of magnitude with respect to past observations, and was likely controlled by Comptonization of external-jet photons produced in the broad line region (BLR) in the gamma-ray band. No evidence of a possible blue bump signature was observed in the optical-UV continuum spectrum, while some hints for a possible 4-day time-lag with respect to the gamma-ray flare were found. Nonetheless, the properties of PKS 1502+106 and the strict optical/UV, X-and gamma-ray cross correlations suggest the contribution of the synchrotron self Compton (SSC), in-jet, process should dominate from radio to X-rays. This mechanism may also be responsible for the consistent gamma-ray variability observed by the LAT on longer timescales, after the ignition of activity at these energies provided by the BLR-dissipated outburst. Modulations and subsequent minor, rapid flare events were detected, with a