Titans general manager Ruston Webster said that Phillips will add an extra element to the club's defense with his ability to play in a number of formations.
"Shaun is an athletic pass rusher, who has been a productive player his entire career," Webster told the club's official website.
"His flexibility is an asset as well - being raised as a 3-4 linebacker and having success in as a 4-3 end last year. He will add to our mix of pass rushers and improves that group from a production and experience standpoint."
Phillips has played for the San Diego Chargers and Denver Broncos in his career so far.