Morocco international Feddal moves to the Stadio Renzo Barbera on a temporary deal that has the option to be made permanent.
The 25-year-old has yet to make an appearance for Parma since joining them from FUS de Rabaat in August last year.
Feddal spent last season on loan at Siena, making 30 appearances as the Tuscan club finished a disappointing ninth in Serie B.
He will hope for better fortune in the top flight with a Palermo team that finished top of the second tier in 2013-14 to ensure an immediate return.
Palermo begin their Serie A campaign against Sampdoria on August 31.
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