The 34-year-old committed to his 13th season as a Toffee, despite only playing eight times last season.
Baines has been eclipsed by Lucas Digne as the club's first choice left back.
But his competitive spirit has not waned, even if he may recognise he is in the twilight of his career.
"It is a new challenge for me in terms of the fact I have not played as much football as I have been used to," he said after renewing his contract.
"But I have also not lost sight of the fact I have been very lucky to play the amount of football I have during my career. I appreciate what I have had and will keep working for whatever I can get.
"I take my responsibilities seriously. And whether I am in the starting eleven or not, I am going to do the same things day in, day out, in case I am called upon.
"But working under the manager and in those new circumstances has been good. It is never completely smooth sailing and you never expect it to be in a job like this."