By Tom Feaheny
The 30-year-old returns to Aggborough after leaving in 2014, signing a two-year contract at the National League North hopefuls.
Vaughan made 35 appearances for Tranmere last season before breaking his leg in April, but still secured a place in the National League Team of the Year.
The popular right-back spent four years at Kiddy, playing 178 times for the club, before moving into Sky Bet League Two with Cheltenham Town.
Now Vaughan, who turned down an offer from Tranmere, aims to have recovered from injury by September and what’s to help the club return to the National League.
“It won’t be too long – I’ve already had two months out,” he told Kidderminster’s official website.
“I think as soon as I am up and running, and I’d say early September time, I won’t be far away.
“But I have to get match fit, and then I have to get into a team that I know will be up there, with some very good players.”
He continued: “The aim was to always come back here. Maybe it’s a little bit earlier than I thought and maybe it’s in a division that I certainly didn’t think it would be in.
“But the Chairman has been in touch and the Manager and Matt Gardiner, for a while now. They’ve been selling the club to me and it’s like coming home, to be honest.
“It’s a place I know very well, but a lot of things have changed – and certainly for the better.
“The club is moving in the right direction and when I left it was going downhill in terms of financials and whatever was happening.
“I just see the club as going forward and on the way up now.”