The young full-back was one of two loan signings completed by Wolves on Monday, with the 19-year-old being joined by Benfica's Ola John at Molineux.
Borthwick-Jackson has been with the Red Devils from a young age, before been handed his breakthrough by former manager Louis van Gaal.
United's Reserve Player of the Year last season made 14 first-team appearances, after been handed his debut against West Brom last November.
New manager Jose Mourinho has told the 19-year-old that he has a future at Old Trafford, but believes that he needs some game time before returning, and could make his debut against Cambridge United in the Football League Cup on Tuesday.
Borthwick-Jackson the latest to leave on loan
Mourinho has certainly had an effect on the Red Devils in the short time he has been there, with a number of youngsters leaving either on a permanent or temporary basis.
One of those is highly-rated striker James Wilson, who confirmed his season-long loan to Nigel Pearson's Derby County.
The patience of Ram's fans seems to be already growing thin, with Saturday's goalless draw with Aston Villa, seeing them score just one goal in their opening four league matches.
But the former Leicester City manager admitted that Wilson will be a great addition to his squad.
He told Rams Player HD: “He will be a great addition to this squad," and admitted to club's video service “What I like about this loan deal is that he’s here for the whole season."
Pearson continued: "Manchester United are pretty selective in terms of where they choose to send their players to," and was adamant “I am delighted he is joining us and he has qualities that will complement what we already have here."
Manchester United will take on Hull City at the KCOM Stadium on Saturday, August 27 with kick-off at 5:30pm BST.