The 21-year-old made 18 appearances on loan for the Bees, scoing three times including a brace against Cardiff City on Boxing Day.
With Wilfried Zaha off to the Africa Cup of Nations with the Ivory Coast, Eagles manager Sam Allardyce could call upon the Eagles academy product in the coming weeks, who has made two appearances for Palace's first-team, scoring once since making his bow in September 2014.
Brentford head coach Dean Smith was full of praise for Kaikai, saying: "We would have loved to have kept hold of Sullay. He is a player with great potential and he has made an impact for us, particularly in recent matches. This is his first taste of Championship football and he has made the step up.
"He is a Crystal Palace player and they have exercised their option to recall him. "They have players going to the African Cup of Nations and have lots of games coming up, so Sullay may be in line to play in the Premier League for them.
"They also have a new manager in Sam Allardyce and I am sure he wants to look at Sullay. I wish him all the best for the rest of this season and thank him for his efforts during his time here."
Meanwhile striker Freddie Ladapo has also returned to the club following his loan at Oldham Athletic, having made 21 appearances for the Latics, scoring three times.