The 30-year-old has spent the past three seasons at Glasgow Warriors, with whom he won the Pro 12 title last year.
Making 29 Pro 12 appearances for the Warriors and a further five in the European Champions Cup, Holmes’ single senior Scotland cap came two years ago against the country of his birth, South Africa.
Delighted to have landed the former Western Province and Stormers back-rower, Newcastle Falcons director of rugby Dean Richards said: “Tyrone is a good player who spent last week with us on our training camp in Yorkshire, and made a very favourable impression.
“He has had a couple of injuries but is back to his best now, and he has a big part to play. Defensively he is very strong, he is good over the ball and he carries well. It is great to have him on board.”
Holmes, who will be involved for the Falcons during Saturday’s pre-season friendly against Nottingham in Darlington, said: “It has been great so far. It has all happened very quickly but I have really enjoyed it.
“I got a text on the Wednesday saying the Falcons wanted to take me on trial, I drove straight down and was training with them the next day. I spent the following week away with the squad at their training camp in Yorkshire and have now signed up full-time. It’s great how it has worked out.”
Reinvigorated by his new surroundings, Holmes said: “It has been nice and refreshing. The boys have been great with me, I enjoy the coaching and it has really brought back my love for the game.
“I never felt that I was finished with rugby. I always had a drive and a desire to play, and when this opportunity came round I grabbed it with both hands.”
Asked what he hopes to bring to the Falcons’ back-row, he added: “Last season the team showed a lot of character and a huge amount of heart. That is something I want to be a part of and add to, and I just can’t wait to get going.
“I am so excited to be getting such an early run-out against Nottingham on Saturday. Hopefully it will go well and I just want to get stuck in.
“Playing in the Aviva Premiership has always been an ambition of mine. I came over and played Championship rugby for Cornish Pirates a while ago before returning to sign with the Stormers in Super Rugby, but taking that step up into the Premiership is something I have wanted to do for a long time. It is a league I have admired from a distance and I am so glad to now have this opportunity with Newcastle.”