The 18-year-old, who has yet to make a first-team appearance for Villa, will remain at Portman Road until January 4.
He could make his debut for the Championship side in Saturday's game at Charlton.
Graham only recently returned to action for Villa's U21 side following a long-term injury and the switch to Ipswich should give him some valuable experience.
Meanwhile, Villa goalkeeper Benjamin Siegrist has joined Burton Albion on an emergency loan.
The 21-year-old Switzerland U21 international is set to link up with the League Two outfit for his first taste of senior football.