The Ghana international was on the brink of completing a transfer to the Terriers after Huddersfield reached an agreement with the Tykes, paving way for a medical last Friday.
Things have not gone smoothly as anticipated, and the fullback has been left with no option than to make a Barnsley U-turn.
"Andy is back with us and could be involved this weekend," Barnsley manager Paul Heckingbottom said.
"This won't faze him, he's a level-headed lad. He's our player."
Yiadom was keen on moving up the ladder, having played lower tier football all this while.
In his bid, he rejected overtures from Barnsley for a contract extension. His current deal is set to expire next summer.
"We had to somehow draw it to a close. So he's back with us," Heckingbottom told BBC Radio Sheffield.
"The thing with Huddersfield was not moving forward, so until something changes he's back with us and is one of our players.
"We gave it every possible chance for Yids and for us, because we were happy with the finances of it.
"But it's just the way things are, it breaks down, so rather than being in limbo we just called a halt on it and he's back with us now.
"Of course he is [disappointed]. But he's a level-headed guy and it won't faze him. He'll put that heartbreak if you like into perspective.
"He knows why he got that opportunity, which was through hard work, so he'll start working hard again."
Yiadom joined Barnsley from Barnet in summer last year, having played for fellow lower division sides Braintree Town and Hayes &Yeading FC.