The 28-year old Morocco international left Kilmarnock as a free agent at the end of last season and has now committed to Hearts, reuniting with former Killie boss Jim Jefferies in Edinburgh.
Jefferies originally signed Taouil to Scotland when he was at Rugby Park back in 2007 and is now expecting big things from him at Tynecastle.
"Hearts supporters like to see special talent and he has that in his locker,” he told Hearts News.
"It is a step up to a big club for him but if we can get him playing at his best, he is someone the fans will appreciate.
"He is something a little different to what we have and I'm confident he will be a good addition to the squad.
"He had a few options to join other clubs but I'm delighted to have got him.
"He is strong, a good passer of the ball and can hold it up well for others.
"He can also bring us something going forward from midfield and it is good to have that sometimes."