The 18-year-old has joined the Saddlers on loan following an injury to their first choice goalkeeper Andy Oakes.
Ruddy, who played 43 times for Cambridge last season - including their 4-0 loss at Glanford Park - will deputise for a month.
After a season playing first-team football for the Us, who were relegated out of the Football League in the summer, Ruddy joined the Premiership side in the close season.