Villa are happy to secure the signature of a player who managed 12 goals in the Championship for Sunderland during the first half of the season.
But he was recalled from his loan at the Black Cats, and he will now be a Villa player for the remainder of the season.
Grabbon spoke about the move with the Villa official website.
"It's a pleasure to be at a club like Aston Villa," he said.
"You only have to look at the stadium, the history and the support to know that this club deserves to be in the Premier League and hopefully I can play my part in getting this club back to where it belongs.
"It's an unbelievable squad of players here and they're on a great run of form as well so it's a great time to be joining.
"I played at Villa Park when I was with Sunderland earlier on this season so I'm looking forward to getting out there in Villa colours and scoring goals."