The Swede moved to the London club in 2010 as part of the deal that took Paul Konchesky from Fulham to Liverpool and has since impressed in the capital, making 49 appearances in all competitions.
His form has also led to international recognition, and he now boasts 16 caps for Sweden having made his debut in a friendly against Brazil in 2012.
Kacaniklic's contract was due to expire at the end of the season, but he has now committed himself to the club as they scrap against relegation from the Premier League.
He has made 16 top-flight appearances this season, scoring once in November's 3-1 defeat to Manchester United.
Rene Meulensteen's arrival at Craven Cottage has seen Kacaniklic become a key figure in Fulham's side, the 22-year-old playing in all but two league games following Martin Jol's sacking.
Kacaniklic also featured in both legs of Sweden's enthralling FIFA World Cup play-off defeat to Portugal in November, and was unable to prevent a 4-2 aggregate loss.
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