The 33-year-old right-hander was 14-7 with a career-low 3.64 ERA in 28 starts for his hometown San Diego Padres last season. He joins a rotation that includes NL Cy Young Award winner Clayton Kershaw, Chad Billingsley, Ted Lilly and fellow newcomer Chris Capuano, who signed a $10 million, two-year deal last week.
Harang is 95-94 with a 4.25 ERA with Oakland (2002-03), Cincinnati (2003-10) and San Diego (2011).
Harang's contract will pay him $3 million in 2012 and $7 million in 2013, with a club option for 2014 at up to $8 million with a $2 million buyout, a source who spoke on the condition of anonymity, told ESPNLosAngeles.com's Tony Jackson.
The option vests at $7 million if Harang pitches 360 innings over the life of the deal with 175 of those innings in 2012; at $7.5 million if he pitches 380 innings including 180 in 2012; and at the full $8 million if he pitches 400 innings over the two years. However, any vesting would be nullified if Harang were to suffer an arm injury during September 2012, the last guaranteed month of the contract.
General manager Ned Colletti says Harang gives the team added depth and a veteran arm in the rotation.
Before leaving baseball's winter meetings, Colletti said he still is looking to add a left-handed bat to the team's bench, something the Dodgers don't presently have unless you count utility infielder Adam Kennedy.
"There is one more free agent we are thinking about making a run at in the next couple of days,'' Colletti said.
With Monday's deadline fast approaching for tendering offers to arbitration-eligible players, Colletti didn't deny that if the player in question were to sign with the Dodgers, fifth outfielder Tony Gwynn Jr. could be in danger of being non-tendered.
"We'll see,'' Colletti said.
The Dodgers signed Gwynn at last year's winter meetings for $675,000 after he was non-tendered by the Padres. But if the Dodgers were to go through the arbitration process with him now, they likely would have to pay him around $1.2 million because he is a four-plus player.
Eveland was 3-2 with a 3.03 ERA in five starts for LA last season. He's 19-24 with a 5.52 ERA in seven seasons with six teams.
Martin was 5-12 with a 4.96 ERA in 31 games with Single-A Delmarva last season. The 22-year-old from Bakersfield, Calif., was selected by Baltimore in the 18th round of the 2009 first-year player draft.
Henson, who turns 25 next week, batted .247 with three home runs and 36 RBIs in 123 games with Triple-A Norfolk last season. The Oklahoma native was selected by the Orioles in the fifth round of the 2006 first-year player draft.
Information from ESPNLosAngeles.com's Tony Jackson and The Associated Press was used in this report.