The ex-Wakefield Trinity forward, 25, has plenty of competition in front of him at the Super League club and won’t feature in their opener against Salford Red Devils on Friday so head coach Simon Woolford has sanctioned the move.
Pontefract-born Smith is, instead, set to play in Featherstone’s first Championship game of the campaign at Bradford Bulls on Sunday.
Huddersfield managing director Richard Thewlis said: "The move came about relatively quickly.
“Daniel has had a mixed off-season with niggles preventing him fully training every day with the squad and as such hadn’t made Simon’s initial squad to play at the weekend.
“Daniel is a big man and needs games to play and keep fit and the Featherstone opportunity is a good one which came up yesterday for him.
“It’s a club that’s local to him, all parties have the recall clause in place after the initial month and we’ll review the situation then.”
A former Leeds Rhinos academy product, Smith spent time with South Sydney Under 20s earlier in his career and also played one game on dual-registration with Featherstone in 2014 during his stint at Wakefield.
He was a regular for Huddersfield last term, scoring three tries in 23 games for the Fartowners, and is in the final year of his four-and-a-half year deal.
Rovers chief executive Davide Longo added: “It’s great to have Daniel joining us here at Featherstone.
“He will add more Super League experience to our team and is keen to prove himself.
“I would like to thank Richard Thewlis and everyone else at the Giants for making this a smooth process.”