He has joined the club for the rest of the season after leaving Wycombe Wanderers.
The 33-year-old has enjoyed a long and successful career in the game, starting his professional career out at Millwall, where U’s Head Coach Neil Harris was a player.
After moving on from Millwall, moves to Concord Rangers, AFC Bournemouth, Falkirk, Sheffield United and Scunthorpe United followed, before Taylor enjoyed great success at AFC Wimbledon and Charlton Athletic, scoring 76 goals in 194 league games for the two clubs.
Taylor joined Nottingham Forest in 2020, where he spent two seasons, before most recently playing for Wycombe Wanderers.
Cambridge United head coach Neil Harris:
"Lyle has been a proven goal scorer over a period of time and has got fantastic experience at this level and leagues above as well.
"He is up to speed now after having six weeks at Wycombe and we think we are getting a player who is coming in hungry, determined and has a desire to score goals.
"I have known Lyle a long time, I know his character and I am extremely excited to welcome him to the club."
Lyle will wear number 18 and is Cambridge United’s first addition during this year’s January Transfer Window.