The 31-year-old Kyle has signed a one-year contract with the Irn-Bru Third Division side as Gers boss Ally McCoist continues his rebuilding job.
The Scotland international was unattached following a string of injuries over the past couple of seasons.
Kyle, who last played for Hearts before a hip problem led to him being released in March, has labelled his move to Rangers as a 'massive opportunity'.
Kyle told rangers.co.uk: "There is only one attraction, and I'm sure that's the same for all the signings: this is Rangers, it doesn't get any bigger than this.
"It's a massive opportunity and there aren't many people who get a chance like this in Scotland. When it came to me I had to pinch myself. When I got in here for a week I told myself I was going to work so hard and prove that I can do a job here."
Capped 10 times by his country, Kyle had spells with several English clubs, most notably Sunderland and Coventry, before moving to Scotland when he joined Kilmarnock in 2009.
Kyle trained with St Johnstone and Dunfermline over the summer before a trial at Rangers led to his 12-month deal.