The 20-year-old has been a regular for the Swans U21 side and is likely to provide cover for Kilmarnock’s first-choice keeper Jamie MacDonald.
Speaking to the club’s official website, Davies said: “This is my first time in Scotland and I am really looking forward to training here and being a part of the Killie team.
“I have watched a lot of Scottish football and I know how competitive the Ladbrokes Premiership is. I know if I work hard I will gain good experience from my time here.”
Kilmarnock manager Gary Locke revealed his delight with the arrival of Davies and how he believes he now has a good mix of experience amongst his squad.
He said: “Billy Thomson spotted Oliver and was immediately impressed by him.
“We were very grateful Swansea kindly agreed to loan us Oliver as it was important for us that Conor Brennan was able to stay out on loan to Stranraer, gaining first-team experience.
“Oliver coming in gives us cover for Jamie and with Devlin Mackay doing well in the development squad we now have a good mix of experience at the club.”