The 35-year-old Calderon, who is entering his 13th season in the NBA, will back up All-Star Kyrie Irving. Cleveland never found a good solution at that position last season after Matthew Dellavedova left as a free agent. Rookie Kay Felder wasn't ready to make a contribution, and veteran Deron Williams never found his groove, struggling in the Finals against Golden State.
Cleveland reached an agreement with Calderon on July 1.
Calderon split last season between the Los Angeles Lakers and Atlanta, averaging 3.4 points and 2.1 assists in 41 games. He appeared in six playoff games with the Hawks.
He'll make the veteran's minimum -- roughly $2.3 million -- next season.
A four-time Olympian for Spain, Calderon has also played for Toronto, Detroit, Dallas and New York. He has appeared in 24 career postseason games.