Hilton, 33, had spent the entirety of his 10-year career with the Indianapolis Colts. He appeared in just five games in 2021, recording 331 yards on nine receptions with three touchdowns.
A native of Miami Springs, FL, Hilton has five 1,000-yards-plus receiving seasons to his name and led the league in 2016 with 1,448 yards.
The move comes less than a week after the Cowboys hosted Odell Beckham Jr., who left Dallas without signing a contract amid reports that he was not healthy enough yet to play after tearing his ACL during the Los Angeles Rams' Super Bowl LVI victory in February.
The Cowboys (10-3) sit in second in the NFC East and are next in action on Sunday when they visit the resurgent Jacksonville Jaguars (5-8).