The 22-year-old had been out on loan at League One side MK Dons since the early part of the season, before heading back to Kenilworth Road when recalled this week.
With James Bree missing out due to injury, Kioso is in the starting line-up for the first time since the 5-0 defeat at Birmingham City in August.
Both Allan Campbell and Reece Burke are fit enough to start, despite the pair going off in during the 3-2 win against the Cherries at the weekend.
Reading: Southwood, Ashcroft, Bristow, Holmes, Morrison ©, Laurent, Drinkwater, Rinomhota, Dele-Bashiru, Swift, Puscas.
Subs: Holden, Abrefa, Holzman, Camara, Clarke, Joao.
Town: James Shea; Peter Kioso, Reece Burke, Sonny Bradley (C), Kal Naismith, Amari'i Bell; Allan Campbell, Pelly-Ruddock Mpanzu, Jordan Clark; Cameron Jerome, Elijah Adebayo.
Subs: Simon Sluga, Dan Potts, Luke Berry, Carlos Mendes Gomes, Henri Lansbury, Fred Onyedinma, Gabe Osho.