Halliday replaces Ridly Greig, who is out day-to-day with an undisclosed injury, per Green.
The 23-year-old Halliday, a 2022 fourth-round draft pick, has excelled at the AHL level this season, collecting one goal and 15 assists in 15 games.
Greig, also 23, has two goals and six assists while playing all 19 Senators games on the season.
The Senators sit just outside the playoff picture in the Eastern Conference at 9-6-4 for 22 points.
They continue their California road trip on Saturday against the Los Angeles Kings before heading to face the San Jose Sharks on Monday.
