Long serving manager Graham Turner handed over to coach Michael Jackson during the season but it turned out Bad in the end rather than into a Thriller and they were relegated before going into the last game of the season.
Mellon, meanwhile, was sacked as Fleetwood manager just a few months after steering them into the Football League and was more recently working as assistant manager at Barnsley, firstly for David Flitcroft and then for Danny Wilson, before being replaced by Chris Hutchings.
He returns with Shrewsbury on a one year rolling contract with Jackson and former Burnley goalkeeper Danny Coyne, both former team mates of Mellon, remaining as his coaches.
Chairman Roland Whycherley, said: "As a club we carefully considered our next step because it was a very important decision for our football club, but having gone through that process, we agreed that Micky fitted our brief perfectly.
"Micky represents all the strong values we hold so dearly as a football club, he is a very passionate person and everyone is looking forward to working with him. We have all been impressed with his enthusiasm and ideas and we are confident of a successful time together."
Mellon was delighted to be working with Jackson and Coyne. "After looking at the environment we're going to be playing in and knowing I could keep lads like Danny Coyne and Michael Jackson with me, which I'm delighted about because I know them really well, I'm looking forward to a really exciting adventure.
"There's a lot of hard work that needs to be done but we're not scared of hard work. We'll endeavour to put a team out on the pitch that represents the people of Shrewsbury, the Shrewsbury fans, and they come and enjoy watching it."
Having Michael Jackson with him should give them a major boost. After all, according to their former owner Mohamed Al Fayed, Fulham's demise this season has come about because of the removal of Michael Jackson.