The veteran left-hander announced the move on Twitter by changing his avatar to a photo of his dog in tiger stripes alongside the team's iconic "Old English D" logo.
Holland signed a minor-league contract, a source told Evan Petzold of the Detroit Free Press.
The 34-year-old is coming off a difficult 2020 season with the Pittsburgh Pirates. Holland put up a career-worst 6.86 ERA and 6.14 FIP over 12 appearances (five starts) for the league-worst Bucs, along with a 1.40 WHIP while allowing 12 home runs.
In Detroit, he'll likely be competing for a depth spot on what might be a thin pitching staff. The team plans to use him as a reliever, according to Jon Morosi of MLB Network.
Holland owns a career record of 79-81 with a 4.61 ERA, 4.58 FIP, and 1.37 WHIP with 1,190 strikeouts over parts of 12 seasons with five teams. His best years came with the Texas Rangers, where he helped the team win consecutive AL pennants from 2010-11.