The 28-year-old, who played for the Trotters in Tuesday’s game at Queens Park Rangers, has completed the paperwork on a deal that runs until the end of May and will go straight into the manager’s thoughts for Saturday’s home game with Notts County.
The Welsh international striker, who has spent the last three seasons playing in the Championship, recently returned from a spell on the sidelines is fully fit and will wear the No.17 shirt in his time at Deepdale.
Manager Simon Grayson said: “Craig will add further quality and competition for us in the busy period we have between now and the end of the season.
“The fact we have been able to sign a player who has been starting at a Championship club shows our intentions and I am grateful to Mr Hemmings for allowing us again improve the options we have available to us.”
Davies himself was looking forward to regular first team football, adding: “I am looking forward to getting plenty of games under my belt. It has been a while since I played a few games in a row so hopefully I can do that here.
“I have been a bit unfortunate the first part of the season through injury, but hopefully the second half of the season I can do really well and play a lot of games for Preston and help push for promotion.”