The 30-year-old full-back has returned to Serie A after four years with the Bundesliga club, while Marcelo Estigarribia has joined Chievo on-loan from Atalanta
The 30-year-old full-back has returned to Serie A after four years with the Bundesliga club and could make his debut during this Sunday's trip to Roma.
Molinaro joined Stuttgart from Juventus, having previously enjoyed spells with Siena and Salernitana.
A statement on Parma's official website on Thursday said: "Parma FC announces that it has acquired outright from Vfb Stuttgart defender Cristian Molinaro, who will wear jersey number three and today will be available to coach (Roberto) Donadoni."
He joins a Parma side sitting seventh in the table after four successive Serie A wins.
Atalanta also dipped into the transfer market on Thursday to sign Paraguay winger Marcelo Estigarribia on loan from Serie A rivals Chievo for the rest of the season.