The 31-year-old Morgan, who has played for Neath, Bristol, Leeds, the Scarlets and the Blues, was understood to be considering offers from English Premiership new boys Exeter Chiefs and a few French clubs, but has opted to stay in Wales. He has signed a two-year deal.
"I think this is the right time for me to move and I am still massively motivated to play at the highest level," said Morgan.
"There are a lot of young players at the Dragons. That is very energising and I hope I can share my experience, put in some strong performances and help the team get results.
"Paul Turner was a big part of my decision to move. He's so well respected in the game and every time I have spoken to him he has been very positive."
The 6ft 5in, 17st 3lbs Morgan was born in Neath and played for the Welsh All Blacks and Wales Under-21, before moving on to Llanelli and Bristol. He then moved to Leeds Tykes where he won the Powergen Cup.
He joined the Blues in 2007 and his return to Wales saw him called up to the Welsh squad for the 2007 RBS Six Nations. He didn't feature in any of the matches but impressed Gareth Jenkins enough to be selected for the Australia tour in the summer of 2007, where he won his only cap as a replacement.