The Birmingham-born 34-year-old arrives at The Glassboys from National League side Barnet where he spent the last two months of the 2020/21 campaign.
Primarily a right-back, Vaughan is known for his attacking prowess down the flank.
Vaughan was signed by then Walsall boss Paul Merson in February 2005 and enjoyed loan spells elsewhere.
He then joined AFC Telford United permanently and spent four years with them before moving on to Kidderminster Harriers, Cheltenham Town and Tranmere Rovers, among others.
It was at Cheltenham in 2014 where Vaughan earned a chance to play in the Football League when Mark Yates signed him.
Vaughan returned to Telford in June last year before finishing the season at Barnet from March.
Now, Vaughan and Yates have been reunited at the Stourbridge War Memorial Athletic Ground.