The fit-again wide man arrives at Vicarage Road desperate for regular first-team action having struggled with injury over recent seasons.
Kightly, a former England Under-21 international, has made just eight starts and 11 substitute appearances in all competitions since the first of his troublesome injury problems in late March 2009.
The 25-year-old has undergone successful operations on both knees during that time, as well as overcoming an ankle problem and a broken metatarsal, and he is now ready to get back to his former self having already started two Premier League games for Wolves this season.
Wolves manager Mick McCarthy told Wanderers' official website: "Having spoken to him he feels he needs to play maybe five or six games on the bounce which is something he hasn't been able to do in the last two years. I am sure this loan spell will be extremely good for him and also for Watford as well."
Speaking after his loan move, Kightly added: "There's a good vibe about the place and I'm looking forward to being here. Hopefully I can do well for Watford before I return to Molineux."
Source: Team Talk
Source: Team Talk