The 21-year-old, who is Welsh qualified, can play in the second row and back row and has impressed Dragons coaches through his consistent performances for Worcester Warriors.
He made his debut for the English side in October 2014 against Nottingham in the British and Irish Cup, a competition in which he helped Worcester Warriors win in 2015.
Taylor has age-grade international honours through England U17s, U18s, U20s and was part of the team that became champions after beating Ireland in the final of World Rugby U20s in 2016.
Following this impressive start to his rugby career he earned himself a full professional contract with Worcester Warriors in 2017 and since his arrival in 2014 he has made 24 appearances.
Commenting on the announcement, Taylor said: “I am very excited to be joining the Dragons at this time.
“They have a youthful team there with great potential to develop, and I am looking forward to being an integral part of that change.
“It appears to be an up and coming environment and I am excited to get stuck in next season.”
He continued: “I am very grateful to Worcester Warriors for all of the significant experience I have learned throughout my time here and will play to the best of my ability for the remainder of my time here.”
Dragons Head Coach, Bernard Jackman added: “We are delighted to be able to bring Huw to the Dragons next season.
“He is a valuable addition to our squad because of his versatility in that he can play lock or back row and is an excellent lineout forward. He has strong leadership credentials despite his young age and we look forward to helping him realise his undoubted potential with us over the next two seasons."
