The 33-year-old striker arrives at the Lane for his second stint in the red and white stripes.
Beattie enjoyed a successful spell at the Blades three years ago, scoring 34 goals in just over 60 starts, becoming a cult hero at Bramall Lane.
He then departed for Premier League outfit Stoke City in a multi-million pound deal and contributed heavily in the Potters' survival in the top flight.
He later signed for SPL side Rangers, who then shipped him out on loan to Blackpool where, he'll admit himself, he didn't have the best goal ratio in Glasgow or on the Lancashire coast.
The former England striker signs a short-term deal at S2 until mid-January and is available for selection for Saturday's short trip to Chesterfield.
On his return, Beattie said: "I am delighted to be back and Sheffield United is a Club that is very close to my heart. I was at the game on Saturday (against Carlisle United) and the fans were singing my name which was nice and this was always one of the Clubs I wanted to return to.
"I have signed a deal until January, which is good for me but more importantly the Club, given I haven't played much at all in the last 18 months to two years."
Danny Wilson commented: "There were one or two Clubs chasing him, but what has pleased me most is that James has shown his commitment to Sheffield United.
"After speaking to him a couple of times we both felt relaxed about the situation, but despite other interest he was determined to return here which is fantastic."
Beattie has been training with the Blades for the past couple of weeks, and it had been rumoured for weeks on our messageboard that he was to return. Join in with the debate by signing up for free of charge right now by clicking here.
Welcome home, James!