The versatile McLaughlin, 32, won four Player of the Season awards following the Stags’ promotion push that saw them miss out in the play-off final at Wembley in May.
He scored eight goals and claimed ten assists during the campaign, including netting the goal that helped send his side to Wembley in the play-off semi-final at Northampton Town.
In total, McLaughlin has made 90 appearances for the Stags since signing from Southend United in September 2020.
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Manager Nigel Clough said: “We’re very pleased that Macca has committed to the club for another two years.
“He has enjoyed an exceptional 18 months, reflected in the numerous personal awards won at the end of last season.
“He was amongst the defenders involved in the most amount of goals in the EFL last season. He gives us an attacking threat down the left hand side - along with Stephen Quinn and others – and was instrumental to the way we played last season.”