Ranadive's company are the lead owners of the Kings and Mullin had been working in an unofficial capacity for the Indian businessman, but the 50-year-old now joins the franchise as an employee with an added responsibility to assist general manager Pete D'Alessandro.
"Chris Mullin is an incredible addition to our organization," Ranadive said in a statement. "I have great respect for his accomplishments and understanding of the game.
"From day one, we have focused on making the Sacramento Kings a first-class franchise built for the 21st Century.
"Chris brings the experience, knowledge, and influence to help us achieve our ultimate goal - bringing a championship to the fans and city of Sacramento."
Mullin represented the Golden State Warriors and the Indiana Pacers in a career that spanned 16 years.