The 27-year-old striker was a free agent having left Wolves at the end of last term when his contract expired at Molineux.
Ebanks-Blake has not played since April having broken his leg and suffered ankle ligament damage in a 3-2 victory at Birmingham, bringing a premature end to a season in which he scored 15 goals.
But the former Manchester United and Plymouth frontman has now regained his fitness and been reunited with Mick McCarthy and assistant Terry Connor at Portman Road, having worked under the management duo at Wolves.
"I'm delighted to get the deal done and finally be an Ipswich player," Ebanks-Blake told Town's official website, having also been courted by several other Championship admirers.
"It's been on the cards for a while now and I'm just pleased we've managed to get everything done and dusted. I'm here now and in the mix with the rest of the lads to play my part for the team.
"I've worked with the gaffer and TC (Connor) before and we've had a lot of success in the past. They played a big part in me wanting to come here.
"You know what you get with the gaffer. He's honest and straight and TC is a great coach, especially with us strikers, and, as I've already said, I'm just delighted to have signed here and I can't wait to get back out on the pitch after so long out injured."
Ebanks-Blake is available to make his Ipswich debut in Saturday's home clash against Watford.
Meanwhile, fellow former Wolves team-mate Hunt has also extended his stay with Ipswich until the end of the campaign.
The Irish midfielder joined the Suffolk outfit in November on a short-term agreement until January but, having made four appearances, he will now remain until the summer.