The versatile 28-year-old missed six months last season after breaking his leg at Wolves in August.
Owls manager Brian Laws said: "I'm delighted Richard Hinds has extended his commitment to Sheffield Wednesday because he is a player who always gives his all to the club.
"Richard showed tremendous character and determination to come back from serious injury last season ahead of schedule to play a key role in our defence towards the end of the season.
"He has now fully recovered from his broken leg and will be striving to make up for lost time next season."
Hinds signed for Wednesday from Scunthorpe in July 2007, six months after former Iron manager Brian Laws arrived at Hillsborough and has made 56 appearances for the Owls, scoring two goals.