The 28-year-old was in top form last season, bagging eight goals and 12 assists and was named League One player of the year by PFA Scotland and picked up the same accolade from his own club.
He has signed a two-year deal.
Easton started his career at Hutchison Vale Boys Club in Edinburgh before signing for Livingston.
A six-month spell at Berwick Rangers followed before joining St Johnstone.
The attacking midfielder has also had spells at Dumbarton, Forfar, Clyde and Kelty Hearts before he landed at Airdrie.
Rovers boss Murray told RaithRovers.net he was excited to have made his first signing.
"I'm extremely delighted to get my first signing done and dusted early doors, especially in the shape of Dylan,” he said.
"I obviously knew him from my time at Airdrie last season, but I also had him at Dumbarton as a kid.
"He needed to go away for a little while and find his feet, not just in football, but in life.
"He always had that undoubted ability and I could see that from playing against him multiple times, he's always been a dangerous player.
"I got a right good look at him last season and what exactly he could bring to my team, let alone any fotball team, so to have him in my team again and on an extended deal at the Rovers is a fantastic start for us here.
Easton added: "I'm delighted to get it over the line, it's been a mad couple of days to be honest since the play-off final against Queens Park.
"The close season always gets interesting when you're out of contract but I can't wait to get started here at Raith Rovers.
"It's been a very good year for me personally, picking up the PFA Player Of The Year as well as Airdrie's.
"It was something special, and it was nice to get the media recognition as well but if I can bring my performances from last season into my time here at the Rovers then I can only improve which is only a good thing."
Also set to make the move to Stark’s Park is Murray’s player/assistant, Scott Agnew.
Airdrie confirmed the move in a statement, saying: “Following a request from Raith Rovers, we have agreed a deal to allow player/assistant manager Scott Agnew to leave the club.
"Scott joined from East Fife a year ago, bringing a wealth of experience on the pitch, and taking up his first coaching role off it.
"Going on to make 41 appearances for the Diamonds, Scott proved to be an important player and a valuable right-hand man to Ian Murray.
"Scott leaves with our thanks and best wishes for the future.”