Hearn linked up with Barrow on loan deadline day just over a month ago but a combination of the FA Trophy, a game between the two teams at Sincil Bank, the adverse weather and illness restricted him to just 80 minutes of first-team action during his time with the Bluebirds.
"Liam recognises that joining Barrow was a mistake on his part, not only in the way it was executed but also his failure to communicate with myself in my position as manager of Lincoln City Football Club," said boss Chris Moyses.
"After a meeting to map out the future, he has apologised for his actions and is looking forward to re-building his career here at Lincoln City.
"I urge all fans to support Liam on his return in our quest for success this season."
Hearn's return means that he will be available for selection for Saturday's important game at FC Halifax Town as City look to get 2016 off to a winning start.
"Looking back I accept I made the wrong decision," he said. "When I decided to go out I had a lot going on at the time, both in terms of football and my personal life and I let things get to me when I shouldn't have.
"It’s always important to learn from mistakes and I've certainly learnt from this. It’s time for me to look forward now.
"I've had a good chat with the gaffer and apologised for what happened. I would also like to take this opportunity to apologise to all Imps supporters.
"My focus now is to get back to my best here, starting with Saturday’s game at Halifax."