Kaikai scored 12 goals in 26 league appearances in his two loan spells with Shrewsbury Town in the 2015/2016 season.
He was named the Sky Bet League 1 Player of the Month for March.
Shrewsbury Town Manager Micky Mellon told the club official website: “We have to say a big thank you to Crystal Palace because he has played a big part in our League One survival.
“I’m pleased that he will now return to Palace and may get the opportunity to be involved in their last few Premier League games.
“His goals have been invaluable but he’s also a great kid and was great to have in and around the place.
“We will now look forward to seeing his progress in the future because he is a lad of great promise.”
Kaikai who was born in London to Sierra Leonean parents will now miss Shrewsbury towns’ last game of the season against Swindon Town and may be included in the Crystal Palace squad that will face Stoke City at home in the Premier league on Saturday.