The 22-year-old has found his first-team opportunities limited by the form of John Sutton and Henri Anier, who signed a permanent deal on Friday, while James McFadden has also played up front in recent games.
McHugh, who has 18 months left on his Fir Park deal, has scored eight goals in 86 games for Motherwell since making his debut aged 16, but all but 13 of those appearances have come as a substitute.
McHugh has only made one brief substitute appearance since going off with a knock halfway through Motherwell's William Hill Scottish Cup defeat by Albion Rovers.
And he is looking to improve his sharpness to stake his claim for a place in the Motherwell team next season, along with helping Queens with their Championship play-off push.
McHugh told www.motherwellfc.co.uk: "I am looking forward to hopefully playing regularly and getting sharp again.
"Queen of the South have performed so well in recent years and I want to play a part of that over the next few months. Being just five points behind Raith Rovers gives us something to aim at.
"My aim is to go there, play games, score goals and get sharp and return in the summer to make a push for regular games at Motherwell."