The deal for the 27-year-old former Manchester City left-back, subject to the usual rules of international clearance, sees Garrido arrive at Carrow Road looking to make the most of a second chance to shine in the Premier League.
Norwich confirmed the signing on their club website, and Garrido adds experience to a squad which survived comfortably in the Premier League last season.
Hughton said: "I'm absolutely delighted to be bringing in somebody of Javier's quality."
Garrido was a Sven-Goran Eriksson recruit at Manchester City, joining for ?1.5million from Real Sociedad in 2007, and he spent three years at the Etihad Stadium before moving to Italy.
He struggled to hold down a regular first-team place at Lazio but Hughton expects him to do well for the Canaries, who have an option to keep him beyond this season.
"It gives us real competition in the squad, and for me an important factor was the fact that he has played in the Premier League before," Hughton told canaries.co.uk.
"He has played in La Liga, Serie A, and the Premier League, so he is a player of real experience."
Garrido follows Steven Whittaker, Jacob Butterfield, Robert Snodgrass and Michael Turner into the club this summer.
Hughton, who also tied up goalkeeper John Ruddy and striker Grant Holt to new Norwich deals this summer, has been scouting Blackburn shot-stopper Mark Bunn.
Youngsters Jed Steer and Declan Rudd are the club's back-up goalkeepers for England international Ruddy.
Hughton added: "Goalkeeper is an area I would like to bring in, because they are young lads and we will also look to maybe get one of them out on loan for some experience."
The former Birmingham boss, whose side head to Fulham for the opening day of the new Barclays Premier League season, added: "We have a responsibility to make sure we have as competitive a squad as possible.
"Our endeavours are still there to strengthen the squad if we can, if it is right for the club, and that will continue through to the end of the month."
Celtic's Honduran left-back Emilio Izaguirre has also been linked with Norwich, but with Garrido arriving to fill that role he could be too expensive an option.