Ismail, who made 15 appearances for Albion during a loan spell in the 2013-14 campaign, is back at the Pirelli Stadium on a deal until January.
The 21-year-old impressed in the pre-season friendly against Leicester on Tuesday night.
“I’m delighted to be back,” Ismail told the club’s official website.
“When Wolves told me that Burton Albion were interested, from that moment I was really happy to come here, get the deal sorted and get cracking.
“I’m here to try and get in the team, to put in good performances and, hopefully, I can impress.”