The winger only made two late substitute appearances for Bolton last term but featured 10 times during a loan spell at the Galpharm Stadium, scoring four goals.
After getting a taste for competitive action, the 20-year-old decided to leave the Premier League side and drop into League One in a bid to further his career.
Ward told Huddersfield's official website: "I want to play first-team games and I think I'll get the opportunity to do well here. I had to make the decision whether I wanted to start the season on a bench getting five or 10 minutes here and there, or hopefully getting in the starting XI at Huddersfield and playing a big role.
"There is no real comparison between playing reserve-team football and playing first-team football at our stadium in front of all our fans. In the end, that is what swayed it.
"It was great to have the fans behind me last season. It gave me a real boost and gave me the confidence I needed to go on and try stuff during games."