The actor, who plays Mance Ryder in the fantasy epic, is joined by Anna Chancellor and Julie Graham in the six-part BBC series which stars Henshall as detective Jimmy Perez.
Hinds said: “I’m looking forward to locking swords with Douglas Henshall and working against the stunning backdrop of Shetland. I came to Scotland a lot in the 70s and 80s in various theatre productions and of course to film Hallam Foe but this is the furthest I’ve ever been.”
The series, adapted from Ann Cleeves’s critically-acclaimed crime novels, centres on the disappearance of a young man on a ferry crossing from Aberdeen to Lerwick.
Executive producer Elaine Collins said: “Shetland has a magnificent core cast led by Douglas Henshall. In our third series, this time telling one story over six hours, our regulars will be joined by a wonderful group of prominent and talented actors who we feel sure have been attracted by some really exciting scripts.”
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