However, after just three appearances he had to return to Wimbledon with an ankle injury.
Problems arose from thereonin after Blues managed to gain a place in the top-flight but didn't offer Hughes a permanent contract because he didn't complete the arranged three-month loan deal.
The 31-year-old midfielder didn't play a single game at all last season because of the disagreement between Wimbledon and Blues as to who should be paying his wages and confusion over which club held his registration prevented him from signing for another club.
Hughes has signed a one-year contract at Selhurst Park.