The striker will now stay with the Owls until the end of November.
Fryatt initially joined Wednesday in late September and has made five appearances, scoring two goals.
The 27-year-old found the net against Brighton and Barnsley to take his career tally to 121 goals.
Fryatt is happy to be playing regularly, telling the Hull Daily Mail: "It's been good. I've been getting stronger. It's been really beneficial.
"You can't apply the things you do in training if there's no game at the end of the week.
"This has provided me with matches and that's what I need. You can't get that in training.
"It takes time to get going again when you start playing and this has been really good for me.
"I've come in to Sheffield Wednesday and played games and scored a couple of goals. I've felt with each game stronger and stronger.
"I've been able to get myself in some goalscoring positions and really enjoyed it."