The 43-year-old stepped down at Eastbourne Borough last week having guided the club to third place in the National League South, falling just short of promotion.
Now he returns to the National League North - the division he won as manager of AFC Fylde in 2023.
Kidderminster wasted little time in replacing Phil Brown, who guided the club to within a win of the title before the club went on to be defeated in the play-off semi-final against Chester.
Murray’s remit will be promotion and he takes over at Aggborough to begin building a squad to challenge again.
Owner Richard Lane told the club's wesbite: “I’m delighted to welcome Adam Murray to our football club.
"His enthusiasm, commitment and passion for the position came through loudly when we met and his CV, as a player and a manager, speaks for itself.
“I believe this appointment will excite our amazing Partners, Sponsors, supporters and staff, this demonstrates again that we are fully committed to succeeding at this level and we’re all looking forward to the new season.”