Chadwick played alongside the likes of Duncan Ferguson and Kevin Campbell at Goodison Park.
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Now 42, Chadwick has left his coaching post at Wrexham to be named Everton academy's new player development coach.
The role will involve working with players in the Under-21s and Under-18s.
He said: “It feels absolutely brilliant to be back at Everton. It’s obviously a club I know well and it’s great to be here and be part of the academy.
“I had a good playing career and I’ve had a coaching career that so far I have thoroughly enjoyed with loads of experiences along the way, coaching young players and helping them along their own journey.”