The 23-year-old Morocco international has tied himself to the London club until the summer of 2016 after helping them to avoid relegation from the Premier League last term
The Morocco international, who played a key role in the Londoners' ascent to the Premier League in 2010-11, made 28 appearances in all competitions as they avoided relegation last term, scoring two goals.
"I am very pleased to have signed this new contract," he told the club's official website.
"When I first arrived here I honestly thought it would just be for a short period but I love this club and the people here have really helped me and I am very happy to be here.
"I had a tough start to the season last year, but I worked hard and I have really enjoyed it under Mark Hughes.
"The club is getting bigger and bigger, and with a new training ground and talk of a new stadium it is very exciting.
"In the time I have been here QPR's ambition has changed. Last year the aim was to stay in the Premier League. We achieved this and now we want to progress and improve. Nobody is speaking about what we can achieve but we really want to move up the Premier League table."
Taarabt has also been given the No.10 shirt at Loftus Road, and Hoops boss Mark Hughes is pleased that the club has kept a "game-changing" player.
"It is important that we keep good, young players at QPR because that is going to drive what we want to do and Adel is a big part of that," Hughes stated.
"There is no question he can produce moments of skill that not many players can.
"And you need those game-changing players who can do something unexpected because that can be the difference between winning and losing in tight games.
"Adel had a period here where it was a little bit difficult for him and the club, but he came through that. When I came to the club, in my eyes it was a clean slate for him and he had a real opportunity to be part of what we are doing.
"I have seen a real effort from Adel and the quality of his work last year was good, both in an attacking sense and defensively. He has embraced what we are trying to do.
"He is undoubtedly a talented boy but he understands he has got other aspects of his game which he needs to work on and he has shown a real effort to do that.
"Defending is not a natural part of Adel's game but he understands that there is an obligation for any player who plays for me to recognise it's not all about playing when we have the ball in our possession.
"Adel and many of the players here understand that the club is looking to go in a forward direction and they want to be a part of it."
Taarabt's renewal follows the summer arrivals of new faces Park Ji-Sung, Robert Green, Samba Diakite, Ryan Nelsen, Andrew Johnson and on-loan Manchester United man Fabio da Silva.