The 20-year-old, who has represented England at Under-16 and Under-17 level, linked up with the Brewers on Wednesday.
He is cup-tied for the FA Cup fixture at Bournemouth but could make his debut in Saturday's League Two clash at home to Cheltenham.
Ismail, who has made 11 appearances for Wolves so far this season but has not played since late November, told the Burton Mail: "Burton is a good club for me to come to.
"I first heard about the move when I spoke to my agent on Tuesday - I wasn't getting games at Wolves.
"He was trying to sort me a loan out, Burton were interested and I said 'yes' straight away.
"They are flying at the moment."
The Belgrade-born player is already looking ahead, adding: "I want to try to get as many games as I can.
"I want to try to help Burton get promotion or get to the top of the table.
"If I do well and they want to extend my loan, I'd be interested."
Meanwhile, Burton have announced that striker Rene Howe has left the club by mutual consent, with the 27-year-old quickly agreeing to sign for Newport County on a free.
Howe scored twice in 19 appearances this season after joining the Brewers in July 2013.