The midfielder and wide man, pictured, was just a teenager when he first played for the Larks a decade ago and turns 30 in the autumn.
Lyons joins the majority of last season's squad in committing to the upcoming EVO-STIK League Southern South & West campaign at Plain Ham after collecting the club's golden boot last term.
Larks spokeswoman Tracey Hill said: "Jamie and his dad Steve are much-loved fixtures at Larkhall. 'Lyno' was the club's top scorer last season with 24 goals and the club is delighted he is staying at Plain Ham."
As well as securing the bulk of last season's squad including skipper Ollie Price, Larks boss Wayne Thorne has been busy over the summer, also bringing in the Paulton Rovers trio of striker Tom Knighton, defender Josh Ford and goalkeeper Ben John as well as full-back and midfielder Jamie Adams, latterly of Bridgwater Town.
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