Nowland has joined on a non-contract basis and made his mark by scoring in Tuesday's Carling Cup first-round win at Crewe.
The 28-year-old, who was released by Notts County on May 31, began his career at Bloomfield Road and made his professional debut for Blackpool at the age of 16 in May 1998.
Nowland said: "This is an unbelievable chance for me. Blackpool are a Championship club but when I last played for them I think we were in the bottom tier. When I left they got promoted under Steve McMahon.
"I just want to grab this opportunity and score more goals. I want to stake a claim because I think this club is going places."
Blackpool will face Premier League side Wigan in the second round, the tie being played in the week commencing August 24.