The move sees the former Derby youngster link up with Liam Rosenior again after they worked together at Pride Park during the previous campaign.
Ebiowei, a former trainee with Arsenal and Chelsea, signed for Palace in the summer after being given his professional debut by the Rams during the 2021-22 season, scoring once in 17 outings.
Eagles boss Patrick Vieira has used the 19-year-old on five occasions this term but he is yet to make his full debut for the Premier League outfit and is currently nursing a "minor injury" at his parent club.
Rosenior said: "I am delighted that Malcolm has decided to join this football club and that we've beaten off a lot of competition for his signature.
"He was my main attacking target from the moment I came in and everyone has worked hard to make it happen."