The England Under-20 international will play at League One level for the first time after consecutive seasons in League Two with Colchester United and AFC Wimbledon.
Goalkeeper Goodman had an outstanding 2024/25, which culminated in a play-off final victory at Wembley and promotion with the Dons.
The 21-year-old’s excellent performances saw him named in the EFL League Two Team of the Season and win the Golden Glove award, keeping 25 clean sheets in 53 matches.
Goodman first joined Palace at Under-13 level and progressed through the ranks at the Academy, appearing in four first-team matchday squads in 2022/23.
After spending the start of pre-season with Palace, Goodman will link-up with Lee Grant’s Terriers in mid-July.
Everyone at Palace would like to wish Owen the best of luck during his loan spell.