Hylton joined the Millers on a free transfer from Aldershot in June, but the 24-year-old has since made just two first-team appearances for the League One outfit.
After undergoing surgery, Hylton is now fit again, but Rotherham have deemed him surplus to requirements.
Wimbledon manager Neal Ardley told the club's official website: "Danny was a player who I was keen on in the summer and I sat down with him then, but we lost out because he wanted to play at a higher level.
"That has not worked out for him so far this season. We liked what we saw when we watched Danny last season and when he played against us for Bury.
"Danny fits the mould of player that we were aiming to bring in. He has good experience, he is hard-working and brings a lot of the attributes that we want from a centre-forward. He will be a big player for us during the rest of this season."
Hylton could make his Wimbledon debut in tonight's League Two clash with Hartlepool United at Kingsmeadow.