The 20-year-old will be hoping to help the side reach the Scottish Championship play-off places.
Despite making 21 appearances for the Light Blues last season, the midfielder has failed to make an impression under current boss Mark Warburton, and spent the majority of the first-half of the campaign on loan with League One side Cowdenbeath.
And having found first-team opportunities no easier to come by upon his return to Ibrox, he explained that it was the influence of Cammy Bell and Nicky Clark - both of whom have previously played for the club - that persuaded him that a switch to the Dumfries side was the right move for him.
"Cammy Bell knew [Queens manager] James Fowler from Kilmarnock and knew [Queens assistant manager] Gav Skelton. He was telling me what a good coach the gaffer and Nicky Clark said good things about this club. They helped to turn my focus towards Queens," he told the Evening Times.
With Fowler's side currently fifth in the Scottish Championship, Murdoch has arguably made the perfect move if he is hoping to prove a point to Warburton
By helping Queens move ahead of Raith - who currently occupy the final play-off spot, but are level on points with Fowler's men - the 20-year-old will arguably be making a great case to Warburton that he deserves a chance upon his return to Ibrox.