Carden joins the Bucks from step-three outfit Warrington Town, where he spent five years in charge and oversaw a series of top-six finishes.
Carl Baker, who had spells with Coventry City, MK Dons and Portsmouth as a player, comes in from Nuneaton Borough as his assistant.
The move brings much-welcome clarity for Telford fans and comes hot on the heels of interim boss Dennis Greene’s exit.
Chairman Andy Pryce said on bringing Carden and Baker to the New Bucks Head: “I am delighted that we have been able to attract a manager and assistant of Paul and Carl’s calibre.
“They bring a wealth of experience to our football club and I am excited to start working with them both.”
Carden arrives with the immediate aim of lifting Telford from the foot of the National League North table, with Saturday’s 2-1 home defeat to Fylde putting them bottom on goal difference.
At former club Warrington, he guided them to two successive third-place finishes in the Northern Premier before ending up fourth and sixth in the last two campaigns – both ended early due to Covid-19.
He previously held caretaker roles at both Cambridge and Tranmere and had a stint in charge of Southport for less than a year in 2015, where he secured the club's status in what is now the National League.
Baker, meanwhile, is no stranger to National North having played for both Nuneaton and Brackley Town over the past few years.
Their arrival comes after a difficult eight-game spell in charge for Greene, who had taken over in the wake of Gavin Cowan's departure at the start of October.
He led the Bucks to a single win and two draws from that period, with the club board maintaining throughout his six-week tenure – which had been referred to as 'semi-permanent' by Greene – that they were on the lookout for a permanent option.
His exit, along with interim assistant Alex Meechan, eventually came this morning, with Carden and Baker than unveiled by the club just hours later.
New chief Carden will take training this coming week, with the first game of his reign being at Felixstowe and Walton United in the FA Trophy next weekend.
Telford said in the statement confirming the appointment of Carden that the process has ‘taken longer, as is often the case with targeted recruitment’.
They also thanked both Warrington and Nuneaton ‘for their assistance and professionalism’ during negotiations.
Pryce added on the new duo: “They are both young and hungry to succeed, and they both share the same aspirations and ambitions for the future of AFC Telford United. Up the Bucks.’’