McAlinden, who spent time on loan with Town in 2013, will remain with the club until early January 2016.
The 21-year-old is glad to be back at Greenhous Meadow and he feels he is a better player this time round.
“I’m delighted to be here,” he told the newly-promoted Sky Bet League 1 club’s official website.
“It’s been on the cards now for a few weeks. We’ve just been sorting bits and pieces out between the two clubs but I’m glad to be back now.
“When I was here last time I was doing well and scoring goals and enjoying my time here, but then it got cut short.
“Wolves needed me so, as my parent club, I went back and did my best for them, but now I’m delighted to be back (at Shrewsbury).
“Hopefully I can kick on from where I left off last time.
“I was young and now it’s a year and a half on. I’ve matured in myself and had a few other loan spells out in the same league and I still carried on scoring goals.”
McAlinden had two spells at fellow Sky Bet League 1 side Fleetwood last season.