The 20-year old has only figured three times for the Premier League outfit since making his debut last year, and does not feature in Paul Lambert's immediate plans despite signing a new two-year contract this summer.
Carruthers is a Republic of Ireland Under 21 international, and he says that he hopes his loan spell will help him to gain some vital first-team experience.
"Last year I sat around on the bench a lot, I wasn't really playing," he told MK Dons' official website.
"This year the manager has let me get some game time on loan and I am looking forward to it.
"All I want to do is play football and show what I can do so hopefully I can do that here."