The former West Ham forward has struggled to secure first-team football at Villa Park and has now agreed to join Mick McCarthy's Championship leaders.
Martin O'Neill's side have inserted a recall clause into the deal for Harewood which means they can bring him back to Villa Park at any time after the first 28 days of the loan.
O'Neill confirmed on Friday night that Wolves had been in touch about securing the powerful striker's services but insisted no decision would be made until after the weekend clash at Liverpool.
Harewood did not even make the bench for the Anfield drubbing, and with Emile Heskey, John Carew, Gabriel Agbonlahor and Nathan Delfouneso ahead of him in O'Neill's plans has seen his chances limited.
The forward has made just six starts this season with his only goal coming against Litex Lovech in the UEFA Cup back in October.
He links up with McCarthy's troops for the final six games of the Championship season and with Wolves holding a five-point lead at the top of the table.