
The 28-year-old had been a free agent after leaving Northampton Town at the end of last season, having suffered relegation from League One with the Cobblers.
Edwards has now dropped into non-league football for the first time, dropping five levels to join the Shropshire outfit, who play in the Northern Premier League Division One West.
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He has been signed by former Norwich City and Blackburn Rovers winger Elliott Bennett, who became Shifnal manager at the end of last week.
The skilful winger made his debut for the Reds as they were beaten 4-0 at home by Witton Albion last night. They currently sit fifth in the eighth tier.
Kyle Edwards celebrates promotion to Championship with Ipswich fans on the pitch at Portman Road. (Image: PA)
Overall, Edwards featured 63 times for Ipswich, scoring three goals after joining from West Brom on a free transfer in the summer of 2021.
He was an important part of Kieran McKenna's squad which won promotion from League One in 2022/23, before leaving Suffolk to join Oxford United in 2024.