The 38-year-old former fly-half from Blaina has joined as replacement for Byron Hayward, who left for the Scarlets in the summer.
Connor played 29 times for the Dragons and then joined the management team as skills coach. He then went on to tackle a job with the WRU where he was based at the Ospreys.
Director of Rugby, Lyn Jones is relishing the chance to join forces again with his former Neath and Ospreys number 10.
"I am delighted that Shaun has come on board as academy skills coach and I am keen to introduce him into some senior coaching as well when possible.
"He was very popular with the players in his first period with the region and then went away to work for the Union at the Ospreys.
"It's great to have him back, he's a good man and the right type of character to have here.
"Growing our own players is very important. With the new Rugby Services Agreement the shape of regional rugby is going to change dramatically and we need to get ready and restructure for the future."
The region's fresh agreement with the Welsh Rugby Union saw the responsibility for looking after the academies transfer from the governing body to the Dragons, Ospreys, Scarlets and Cardiff Blues.
James Chapron is now employed by the Dragons along with Connor, conditioning coach Rhodri Williams, analyst Owen Griffiths and physio Kat Lenon.
