The 35-year-old played 65 times for the Gers over a two-year period, winning the Scottish Premiership title and Scottish Cup, before making the switch to Championship side QPR last summer.
Balogun made 16 appearances for QPR as they narrowly avoided relegation from the second tier in 2022-23, and he has now decided to return to Glasgow on a free transfer, penning a short-term deal until the summer of 2024.
The Nigeria international arrives at Ibrox at a time when young defender Leon King is facing a 'significant period of time' on the sidelines after sustaining an ankle injury on Tuesday.
Balogun becomes Michael Beale's seventh signing of the summer transfer window after Kieran Dowell, Dujon Sterling, Jack Butland, Sam Lammers, Abdallah Sima and Cyriel Dessers, and he has already joined up with his new teammates at the club's pre-season training base in Germany.
"Leon is a person that I have full trust in both as a footballer and a man," Beale told Rangers' official website.
"He is extremely well-liked by everyone inside the club, and we are very happy to have someone with his experience and leadership qualities re-joining our squad. Naturally he will integrate back into the club very quickly and he understands fully our way of working and style of play.
"As a free agent, we were able to move quickly so that he could join us here in Germany. It was really nice to see the reception he received from the players and staff on joining us here at the camp."
Balogun added: "I am just excited to be honest, it is still a bit unreal but it is very real, so I am just really really happy to be back at Rangers - it feels like coming home.
"Since I have left, I have always felt a lot of appreciation and love from friends I have made in Glasgow and around the club and now that I am back it is nice to say the least.
"I know second is no option, I know what people are going to say very quickly if we are not performing so it is time to get to work, put our best foot forward and make sure we get the results that we need."
Balogun is already familiar with a number of fellow new recruits at Rangers including Dowell, Sterling and compatriot Dessers and he is looking forward to his second spell at the club.
"I have played with Kieran Dowell before at Wigan and Dujon Sterling as well but with Cyriel it's special because we both play for the national team," said the defender.
"I think he is a very very special player, he is a very intelligent striker. I didn't play many games with him but in training he was more than a handful. In terms of the other players, I know Dowell is very special and very gifted, but I am just looking forward to joining the group."
Balogun continued: "I know second is no option, that is why I don't even want to talk too much because I know what people are going to say very quickly if we are not performing. It is time to get to work, put our best foot forward and make sure that we get the results we need."
Balogun could make his second Rangers debut when they kick-start the new Premiership season away against Kilmarnock on August 5.