The 22-year-old, who has 18 months remaining on his Wolves contract, has a successful loan with the Lions last season, making 14 appearances between January and March of last year, and scoring one goal.
Wallace, who has made 23 appearances for Wolves and scored two goals since moving from Portsmouth ahead of the 2015/16 season, has found first team opportunities limited in recent weeks.
“Jed has found it difficult to break into the team over the last couple of months, and he needs to be playing regular football,” said Sporting Director Kevin Thelwell.
“He had a very successful loan with Millwall at this time last year, and hopefully he can repeat that at a good club battling for promotion to the Championship.
“All parties will see how the loan progresses over the next few months, and then we can re-assess the situation in the summer.”
Wolves wish Jed all the best for his loan spell.
