The versatile winger/defender is thrilled to have made the move to Shropshire and is looking forward to again linking up with manager Steve Cotterill after previously playing under the Salop boss at Bristol City.
"I am absolutely delighted," said Bennett.
"As soon as my agent mentioned Shrewsbury Town's interest, I was really keen to speak to the manager.
"I am delighted to sign and I am hoping that I can bring something to the team on the pitch."
Bennett brings a wealth of experience having represented Norwich City and Blackburn Rovers in England's top two divisions.
"I would like to think I will be able to pass on my experience and help the team, I have been around and played a few games," said the 32-year-old.
"I am really excited to play and I will look to help wherever I can. I will give absolutely everything to the Football Club.
"I want to make the fans smile. The fans come to the stadium to be entertained.
"I know Aaron Wilbraham from playing with him at Norwich City and Bristol City, and he has always been fantastic in the dressing room.
"The gaffer (Cotterill) took me on loan to Bristol City and I am delighted to be working with him again - I want to repay his faith in me."