His contract with Town expires at the end of the season but Groves is keen to leave before and the chance at Glanford Park will provide an ideal chance for a permanent exit for Groves.
Groves will be managed by Brian Laws who managed Groves during most of his spell at Town between 1994 and 1996 before he was sacked. Groves had left for West Brom four months before Laws was dismissed.
Laws told the Iron official site that he was delighted to sign Groves and admitted he'd consider looking towards extending the stay after the month expires.
"We have brought in Paul Groves from Grimsby on loan," Laws said.
"He is going to be a very good acquisition for us and that is the important thing.
"He has an old head on his shoulders, he is experienced, a very good organiser and talker. He is also a very good footballer as well.
"I believe he will be a very good acquisition for us at this moment in time.
"I don’t think anyone could question the effort and commitment of our midfield players but sometimes we need a bit of calmness out on the pitch.
"It was vital that we strengthened that area and Paul will help develop our players. They will understand the game better having an experienced player alongside them.
"We have made one signing at the moment and it could still be two before Saturday, we will make a late decision.
"We are very pleased to get Paul it has been a long negotiation but the good thing is that he is a Scunthorpe player for one month and then we’ll see how things go.”