The pet, named Chubbs, returned to his home in Cupar with a wire wrapped around his neck.
The incident, which took place on 7 June at Buchanan Park, came just weeks after another cat was snared on the same street.
The Scottish SPCA said it was a frightening ordeal for the animal and described the setting of snares as "unacceptable".
Steven Gray, of the charity, said: "No one expects their cat to be deliberately harmed like this."
He added: "Obviously this was incredibly distressing for Chubbs' owner.
"Chubbs had gone outside between 21:00 and 22:00 that night and returned with the snare wrapped round his neck.
"Luckily, he hasn't suffered any severe injuries but he's clearly had a bit of a fright and has since been more clingy and reluctant to go outside.
"This homemade snare was set illegally and only a month ago the same thing happened to a cat owner on the same street."
A cat has survived becoming caught in an illegal snare in Fife.