His versatility of being able to play centre-back or right-back means the former England Under-21 star will aid the Owls' depleted numbers and he has Championship experience having featured for Nottingham Forest in the 2012-13 season.
The 24-year-old will wear the number 41 shirt and is available for the FA Cup fifth-round tie with Charlton on Saturday.
He has been on the books of Chelsea since the age of seven, graduating through the ranks to earn his first professional contract at Stamford Bridge.
Hutchinson debuted for the Blues against Everton from the bench in the top tier before making his maiden start facing QPR in the League Cup.
A call-up to the England Under-21 squad swiftly followed after he had already earned recognition at Under-18 and Under-19 level.
The Londoner went on to become a regular reserve team captain for Chelsea and then enjoyed a fruitful loan spell with Championship side Nottingham Forest during the 2012/13 campaign.
Hutchinson made nine appearances for Forest, scoring one goal along the way, before moving to the Dutch top flight with Vitesse Arnhem last summer. He was recalled by Chelsea in January.