The 23-year-old made two appearances for Ipswich last season as they earned promotion back to the Premier League.
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Baggott has now returned to the English second flight, joining Millwall for an undisclosed fee on a contract that has only been described as ‘long-term.’
"He's a good age, has a real appetite to improve and fits the profile we look for defensively," Steve Gallen, Millwall's director of football, told the club's website.
The centre-back becomes Millwall’s fifth signing of the summer as they seek to build on an impressive 2025-26 season.