The fans' favourite sealed his return to the Coral Windows Stadium by penning a one-month loan deal this Friday after training with his City team-mates.
With Paul Anderson unfortunately expected to be out most of the season with a broken leg and Josh Morris still sidelined with a knee injury, Parkinson was left with only Mark Marshall - a childhood friend of Reid's - in the squad as an experienced wide player.
Reid's return now gives Parkinson an extra option on the wings, however, and the City chief knows the 27 year-old, unlike some loan players, won't need time to settle in having been at the club once before.
Parkinson said: "Kyel is a player that the supporters know very well. They understand his strengths and I'm sure they will get right behind him.
"Kyel is comfortable at Bradford City and he really enjoyed his first spell at the club. It is a big boost for us to have him back.
"Sometimes you watch a player and you bring him in and it is only then that you know for certain what they are like. With Kyel, we know what he is all about already.
"He has the ability to get past defenders and get crosses into the box, and he's had some terrific games for us down the years.
"We are all looking forward to seeing him in a Bradford shirt again."
The player himself added: "I'm buzzing to be back and to be given the opportunity to get some games under my belt.
"I'm looking forward to getting back out there for Bradford and helping them get back up the league.
"There have been a few opportunities for me to go out on loan but this is the best club for me - it was a no-brainer.
"Coming here with the history I have with the Gaffer and with this club, it made perfect sense to me to come back again.
"I obviously know a lot of the lads from before and I grew up with Marshy (Mark Marshall) down in London - we played for the same local team for a while.
"My little boy is always talking about Bradford, Bradford, Bradford, and I can't wait to get out in front of those fans again.
"I feel fit and raring to go. I want to try and get some goals and assists and get that excitement back again."
Bantams skipper Stephen Darby played alongside Reid for two seasons during his first spell at the club - a period which saw City promoted up into League 1 and reach the Capital One Cup Final.
Darby added: "It is great to have Reidy back, we all know what he is like as a player.
"He has bags of ability and plenty of pace.
"When you add someone like Kyel to the squad with the quality he has, it is always going to be a massive boost."