Terry joined the club earlier this month, signing a one-year deal with the Sky Bet Championship side as manager Steve Bruce sets his sights on mounting a promotion push for the 2017/18 season.
David de Gea, Sergio Romero and Joel Pereira are ahead of the Englishman at the moment, but the club were not willing to allow him to leave on a permanent basis.
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Johnstone, who has yet to make his competitive debut for United, kept eight clean sheets in the Championship for Villa last season and made an average of 1.90 saves per game. Is Johnstone good enough to be number one at Villa Park?
The 36-year-old defender led Villa out at Shrewsbury and was quickly making his presence felt by directing play from the back.
The club will hope that the experience and leadership of the former England captain will be beneficial to their side next season.
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"I am delighted to be back", former England Under-20 global Johnstone told the official Villa website.
"I really enjoyed my last spell here - it's a great club with top players and passionate fans".
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So far he’s performing as expected, notching impressive rebounding and blocking numbers in heavy Summer League minutes. It’s undeniable at this point that this rookie class is going to generate a lot of attention for a long time to come.