Carolina announced the one-year contract on Wednesday afternoon. Peppers, 38, had 33 tackles, 11 sacks, two fumble recoveries and two forced fumbles in 16 games last season for the Panthers. He made five starts.
The No. 2 overall pick in the 2002 NFL Draft played his first eight seasons for the Panthers, before joining the Chicago Bears in 2010. Peppers joined the Green Bay Packers in 2014 and rejoined the Panthers last offseason.
The nine-time Pro Bowler and three-time All-Pro selection was the 2002 Defensive Rookie of the Year.
Peppers has 702 tackles, 154.5 sacks, 78 passes defensed, 52 forced fumbles, 20 fumble recoveries, 11 interceptions and two touchdowns during his 16-year NFL tenure. He has appeared in 250 games and made 232 starts. Peppers did not miss a start from 2003 through 2006 or from 2010 through 2015.
He ranks No. 4 all-time in sacks and leads that category among active players.