Buffon has signed a two-year contract with the Serie B side after leaving Juventus at the end of the 2020/2021 season.
The 43-year-old started his professional career with Parma, winning the Coppa Italia, Italian Super Cup and UEFA Cup before Juventus snapped him up for a then world record fee for a goalkeeper in the summer of 2001.
With the Old Lady, Buffon won 10 Serie A titles and five Coppa Italia trophies among numerous other honours across two spells before deciding to call it quits in Turin.
He also spent the 2018/2019 season in France with Paris Saint Germain, winning the Ligue 1 title and Trophees des Champions.
"We are thrilled to welcome Gigi Buffon home, it's a really special moment for all of us," said Parma president Kyle Krause.
Parma are in a different state to when Buffon kept their posts at the start of his career. The Ennio Tardini Stadium outfit finished bottom of the Serie A table last season and will compete in the second tier of Italian football next season.
Buffon won the FIFA World Cup with Italy in 2006, amassing 176 caps for the Azzurris.
