The 34-year-old has spent time at Ipswich before, having joined them from Chester City in 2007 before leaving for Stoke City three years later. And he will be spending the next few months in England's second division with the side who are currently placed bottom of the league table.
"Jonathan Walters has joined Town on loan from Burnley until January 2019," the club announced via their official website.
"It is the forward’s second stint at Portman Road, having previously been on Blues’ books for three years up until 2010.
"Now the 34-year-old, who has earned more than 50 caps for his country, becomes Paul Hurst’s 11th addition as Blues boss.
"Jonathan will wear the number 39 shirt for Town this term."
Walters joined the Clarets from Stoke last year but only played a total of 37 minutes in the Premier League. He will be hoping to reignite his career at Portman Road this year.