Pugh, 33, becomes the second experienced former Premier League ace to join the Montgomery Waters Meadow club on a short-term deal in the space of four days.
The winger spent nine successful years at Dean Court, earning legendary status with the Cherries, helping them from League One to the top flight under Eddie Howe. He made 67 Premier League appearances with Bournemouth.
He joins former left-sided colleague Daniels, 34, on a short-term deal at Shrewsbury until the end of January.
The former Bournemouth and Hereford wideman left the Cherries in 2019 and had a season with Championship side QPR, where he played 31 games in all competitions last season.
Like Daniels, he had been training and playing reserve fixtures with former club Bournemouth during recent weeks.
Pugh, who is from Lancashire, started out as a youngster at Burnley before joining Salop from Bury under Gary Peters in 2007.
He played 37 games in League Two in his first season in Shropshire, which ended with Paul Simpson having replaced Peters.
Pugh, who would go on to play 312 games and score more than 50 goals for the Cherries, was out of favour at the beginning of the 2008/09 campaign and loaned out to Luton and then Hereford by Simpson.
The winger would join Hereford, who were relegated to League Two, on a permanent basis that summer and impress at Edgar Street, before joining third tier Bournemouth a year later, in the summer of 2010.
In total he made 46 appearances for Shrewsbury, scoring four goals. Pugh's last appearance for Shrewsbury was as a late substitute in a 3-1 defeat at Luton in February 2009.
Boss Sam Ricketts said: “We are delighted Marc has joined the club. He is a player who knows the club well and he was very keen to come back.
"He enjoyed a great nine years with Bournemouth, gaining promotion to the Championship and the Premier League. He adds some more experience to our squad and will add a lot to our team.
"We are delighted to have him in and we are looking forward to working with him.”