Palmer played a role in Huddersfield’s promotion-winning campaign in 2016/17 and helped guide Derby to the play-off semi-finals while on loan in the second half of last season.
He was hoping to return back to Stamford Bridge and challenge for a spot in Maurizio Sarri’s first team squad, but his plan was scuppered by the Italians shock deal for Rob Green.
H told Blackburn’s official website: “I’m happy to be here and want to be a part of something exciting in the Championship next season.
“Moving forward I want to achieve something special here.
“I want to bring my past experiences from the last couple of seasons to the group, but we have a squad full of experience already and that can only help us.
“It’s a very good team and the dressing room will be full of confidence from promotion last season and hopefully I can add to that.
The latest deal for the youngster is just one of a number of loan deals the Blues have done this season, as they continue to fail the talents and give them a sot in the first team.
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