The Mexico international will wear the No.18 at the Eredivisie giants and says he hopes to win silverware during his time with the club
The 27-year-old winger spent the latter part of last season in the Bundesliga with Bayer Leverkusen, but returned to the Mestalla this summer and played a big part in Valencia's pre-season matches.
However, the Mexico international has now opted for another temporary spell away from the Liga side, joining the Eredivise giants until the end of the 2014-15 campaign.
"I'm very pleased and looking forward to a great season, which I will play in to win prizes," Guardado, who will wear the No.18 shirt, told PSV's official website.
"This is a great club and I hope to be able to be successful here."
The former Deportivo La Coruna man has won over 100 senior caps for Mexico and was part of el Tri's run to the last 16 of the World Cup this summer, scoring in the crucial 3-1 win over Croatia in the group stage.