Jones had been tracking Blues midfielder since his Brighton days
Hatters boss Nathan Jones admitted he had been wanting to work with Birmingham City midfielder Andrew Shinnie when was on the coaching staff at Brighton.
The former Rangers and Inverness Caledonian Thistle player had been on Jones's radar during his time with the Seagulls, after impressing at St Andrews under then Blues chief Gary Rowett.
He has now penned a season-long loan deal with the Hatters, much to the Luton manager's delighted, as he told the club's official website: "It’s a wonderful signing for us.
"I have to confess, Andrew was on my list when I was at Brighton to take him there, so to get him for Luton is a real coup for the football club.
“He has a proven track record. He was an excellent player in the Championship through Birmingham’s really good spell under Gary Rowett and he’s a player that myself and Joaquin Gomez flagged up early in our Brighton time.
“So to actually bring him to the football club is wonderful.
"We lost a wonderful player in Cameron McGeehan and what he does is difficult to replace.
"But we have brought in a different Championship quality player and we are delighted.”