The loan runs until January 22 but, should he impress at his new Portman Rd home, there is every chance Fallon will sign a longer-term deal at Ipswich or elsewhere as his prospects at current club Plymouth Argyle appear poor.
Fallon has scored just once in 12 appearance for Plymouth this season and manager Peter Reid is happy to let him leave.
“I’ve decided to let Rory go out with a view to a permanent move when the transfer windown kicks in in January,” he says.
“We’ll be actively seeking a replacement. It’s a geat opportunity for Rory and I’m sure he’ll thrive in the Championship environment.”
Although he seems to be surplus to requirements at Plymouth, the move is actually a step up for Fallon as Reid’s side competes below Ipswich in League One, the third tier of the English game.
He could line-up alongside Smith, who has been a regular fixture in the Ispwich back four this season in either a central or left-back role, on Sunday in an East Anglian derby match away to Norwich.
Ipswich are managed by former Manchester United star Roy Keane and sit 13th in the 24-team league.
Fallon has scored 19 goals in 141 games for Plymouth and has also played for Barnsley, Swindon Town and Swansea City.
The son of former All Whites assistant coach Kevin Fallon, he has a fond place in the hearts of New Zealand football fans after scoring the sole goal in the two-legged playoff win over Bahrain to qualify for the FIFA World Cup in Wellington last year.
He did not feature in the 1-1 friendly draw against Honduras last month at North Harbour Stadium in Auckland due to injury but came on the second half of the subsequent 2-0 loss to Paraguay at Wellington’s Westpac Stadium a few days later.