The Brazilian played a starring role in Wolves’ Championship-winning season of 2017/18, scoring 12 goals and spearheading the attack for much of the campaign.
The 24-year-old made his loan move permanent during the summer and netted against Sheffield Wednesday in the Carabao Cup in August.
However, Premier League minutes have been harder to come by for Bonatini, who has appeared seven times off the bench in the league this term.
His latest Wolves appearance came against Tottenham Hotspur in November and he now links up with a Forest side hunting a Championship Play-Off place.
He will be available to make his debut against Birmingham City on Saturday.