Bolton striker Eaves, who spent the back end of last term on loan at Town, returned to the Greenhous Meadow in late November on an agreement until January 5.
He scored on his second debut in a 3-1 win at Stevenage, to date the only goal in six starts for the Shropshire club.
But boss Graham Turner has seen enough to keep Eaves on board until the summer, and he will now be in contention for Tuesday night's home clash against high-flying Leyton Orient.
"Tom Eaves' loan has been extended until the end of the season and we are pleased about that," Turner told the club's official website.
"I don't think we've seen the best of Tom since he came back but he was short of game time and hadn't played much football until the games he played for us.
"We know he can score goals, we know he can contribute to our cause and we are glad to have him with us until the end of the season."
However, Turner has opted not to extend right-back Cameron Gayle's loan stay and he has now returned to parent club West Brom.
Defender Connor Goldson appears likely to extend his loan deal at Cheltenham, with the inclusion of a 24-hour recall, while Shrewsbury have left it open for Adam Reach's potential return, with the winger back at Middlesbrough looking to impress new boss Aitor Karanka.
Elsewhere, Shrews have opted not to extend youngster Jack Gwilliams' six-month professional contract, although the winger will continue his rehabilitation with the League One club having sustained injury in pre-season.