The long-serving defender has extended his stay at Huish Park for what will be his seventh full season with the club across two spells.
The 30-year-old has made 254 appearances for Town – more than any other Glover since reaching the EFL – including 42 during the 2016/17 season.
Smith was plucked from non-league Potters Bar by the Glovers back in 2008 and has gone on to become a cult hero in Somerset.
The twice-capped Jamaica international has also found his scoring boots under the management of Darren Way, netting three times during the Yeovil manager’s tenure – quadrupling his career goal tally in the process.
Smith is now under contract until the summer of 2018 and has expressed his delight at extending his stay.
“I’m happy to get it sorted and can’t wait to go again next season. I’m looking forward to it,” he told YTFC.net.
“I spoke to the gaffer and know the direction he wants to take us, so let’s go.
“It’s always positive to get it out the way (contracts) and I wanted to stay. It’s a good environment and I respect the staff and know the direction they want to go in, so I’m pleased to be a part of it.
“I’m looking forward to adding to my appearances next season – this club gave me the opportunity in football so I’m delighted to be staying.”
Town boss Way is equally as pleased to have retained Smith’s services.
He said: “Nathan carries unbelievable leadership, commitment and loyalty and when you get players like that, it’s important that we showed our commitment to Nathan as much as he has to us.
“He’s played over 250 games for this club which is hard to find nowadays. He’s very professional on and off the pitch and someone the younger players can look up to.
“I’m excited to continue working with Nathan next season.”