The 20-year-old was loaned to Premier League side Burnley at the start of the season, but struggled to make an impact with just four substitute appearances made at Turf Moor.
When that deal expired on January 2nd, it seemed that Bordeaux was the likely destination for the English Under-21 international; but after that fell through Steve Clarke pounced on the available midfielder.
Chalobah will take number 14 in the Royals squad, and is available for the trip to Cardiff on Saturday.
After loan spells in The Championship at Nottingham Forest, Middlesbrough, and Watford- where the youngster particularly impressed- this is another case of dropping down a level to gain experience for Chalobah. Furthermore, he is tied down to a chunky contract with Chelsea until 2018.
On the Official Reading Website, Royals boss Steve Clarke had this to say on the Chelsea loanee:
"Nathaniel is a good young player who I have known about and followed for some time,"
"He burst onto the scene as a 17-year-old when he was part of the Watford team that narrowly missed out on promotion to the Premier League in 2012-13. Since that season, he has gained experience at other clubs and now feels that Reading is the right club to further his development as a player and we are delighted that he has chosen us ahead of anyone else.
"He will certainly enhance our already strong midfield department with his qualities. We welcome Nathaniel to the club and look forward to him playing his part in a more successful second half to the season."
So, is this a good signing Reading? Do we need a central midfielder? Comment below.