The 20-year-old featured at the 2012 Fifa U17 Women's World Cup in Azerbaijan, where she scored her country's only goal.
On Thursday, the Lagos outfit announced the acquisition and arrival of the Gambia star after agreeing on personal terms.
After receiving Bah, Dream Stars coach Ifeanyi Nwosu said: “It’s like a dream come true for me to have Penda under me as I have been a long-time admirer of her.
"She will be the biggest name in my team, so I am hoping to see her excel in the league. I’m sure that she will feel at home.”
On her own part, Bah expressed delight over joining Dream Stars and is aiming to help them to title success in the new season.
"I am very happy to join Dream Stars Ladies and I hope to bring my wealth of experience to bear," she said.
"I am here to help the team, and together we can achieve our objectives. This is my first time
"I want to prove myself and repay the faith shown in me by the management. It is a dream come true for me, I have been waiting for this opportunity "
Bah is on hand to start pre-season training with her new club in coming days ahead of the upcoming season scheduled to commence in March 2019.