Graham will link up with Tractor Boys boss Mick McCarthy during a temporary stint at Portman Road, which is set to run until January 4.
He made some important contributions to the Villa cause in 2012-13 despite his season being halted early by injury.
The exciting winger scored a big goal in the 2-2 draw against Celtic in the NextGen Series.
He also showed great composure to tuck away a match-winning penalty against Manchester United at Altrincham in a Barclays U21 Premier League clash.
It followed on from Graham's red-hot scoring streak the previous season.
The Coventry-born ace scored seven times in the Barclays Premier Academy League during 2011-12 - six of those coming in five games at the turn of the year.
Graham kicked off 2012 in style with a brace in the U18 team's win over Watford, before converting a penalty a week later in a 1-1 draw with Coventry City.
But he saved his best for the derby showdown against Birmingham City at Wast Hills, scoring with a stunning 30-yard effort as Villa won 4-0.
His impressive run continued into February with Graham netting in a 2-0 win over Bristol City and a 5-2 defeat against eventual league champions Leicester City.
The tricky winger made several appearances for the reserves and featured four times in the NextGen Series, including a start against Ajax in Amsterdam.
In March 2012, in the week of his 17th birthday, Graham put pen to paper on his first professional contract.
The highly-rated wideman has also represented England at U16 and U17 level.
Along with fellow Villa academy stars Joshua Webb and Callum Robinson, Graham helped England U17s topple Portugal, Netherlands and France to win the Algarve Tournament in February 2012.
A gifted dribbler who can operate on either wing, Graham showed glimpses of his talent in the league and FA Youth Cup in 2010-11.
He netted twice for the U18s that season, scoring in a 2-1 defeat against Norwich as well as slotting home a penalty in a 3-1 success over Crystal Palace.