The Blaugrana have the option to make the move permanent at the end of the season.
Traore came through Barcelona’s famed La Masia academy and returns to the club six-and-a-half-years after initially departing for Aston Villa.
The 26-year-old also played for Middlesbrough before joining Wolves in the summer of 2018.
"Barcelona and Wolverhampton Wanderers have come to an agreement for the loan of Adama Traore until June 30, 2022," Barcelona confirmed in a statement released on the club's official website.
"The Blaugrana will take on the player's registration and have an open purchase option.
"Adama Traore's presentation as a new first-team player will take place on Wednesday, February 2 without public attendance. The club will soon reveal further details."
Wolves’ technical director, Scott Sellars, told the Premier League club's official website: "Adama has always acted with the utmost professionalism, however it is no secret that we have not been able to agree a new contract with him, despite protracted negotiations, and his desire at the moment is to play football elsewhere.
"Everyone knows Barcelona is a city, and club, very close to Adama’s heart, so it is a dream move for him. We have also agreed a very healthy option in the deal should Barcelona wish to make the move permanent this summer.
"We wish Adama the best of luck in Spain, and hope that he plays regularly, has great success and shows everyone what he is capable of."
Traore has won eight caps for the Spanish national team.
