Puncheon, who did not feature in the 18-strong squad for Southampton's opener at West Bromwich Albion last weekend, said he was thrilled at the chance to return to Palace where he had played as a boy.
"I think it's a great move for myself to come and play games," the 27-year-old said. "Obviously Crystal Palace are my hometown club and more importantly (manager) Ian Holloway is here as well.
"I actually played for Crystal Palace as a kid when I was eight. I left and there were a few times in my career that I was due to come back but didn't. Now I'm here that's the main thing.
"I've always as a young kid dreamed of playing at Selhurst Park, so it's a young boy's dream coming true."
(Writing by Ossian Shine; Editing by Rex Gowar)
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