Barlow, a 6-foot-5 guard, was dismissed from Purdue's team last season because of a violation of team rules. He started 29 games in three seasons for the Boilermakers and averaged 8.3 points, 3.7 rebounds and 1.7 assists last season.
Barlow will sit out the 2012-2013 season and will have one year of eligibility remaining for the 2013-2014 season.
"We're excited to bring a player of Kelsey's caliber into our program," Moore said in a statement. "I coached against Kelsey during his great freshman season when I was at Wisconsin, and have always been impressed with his skill-set. He will be a great asset to our younger players every day in practice during his transfer year and as a senior, I expect him to be one of the better players in the Horizon League.
"Kelsey's transfer to UIC will be very beneficial for both him and our program. He is excited and humbled about this next phase of his college basketball career, and to be a teammate again. Kelsey is a kid with great character, and my discussions and interactions with him have proven that. We're excited for him to join our team."
Moore also announced the additions of walk-ons Austin Angel, who is from New Trier in Illinois, and Ngijol Songolo, who is from Memorial in Wisconsin.
UIC was 8-22 overall and 3-15 in the Horizon League last season.