The Highlanders winger injured his knee at training at Logan Park on Monday and is out for six weeks.
That comes on the back of a forgettable performance against the Blues in Auckland on March 22.
The Highlanders released a statement late yesterday which said Naholo had sustained a knee injury at team training.
He has undergone an MRI scan, revealing a grade two medial cruciate ligament injury. He was in a knee brace and would be unavailable for up to six weeks while rehabilitating.
Naholo may return for the game against the Jaguares at Forsyth Barr Stadium on May 11. The Highlanders head to South Africa straight after that game so he will want to play the Argentinian team to prove his fitness for the long trip to South Africa.
Naholo has not managed to get out of second gear all season and has failed to score a try in the four games he has played.
For a man who has scored 41 tries since his Highlanders debut in 2015, that is a barren run.
Naholo did not play in the first game of the season against the Chiefs and has not looked his normal deadly self when he has been on the field.
His chances to make the All Black squad for the Rugby World Cup have taken a hit with his latest injury.
The Fijian, who turns 28 next month, is a confidence and instinct player, but these have been missing in large volumes this season. He had a poor game against the Blues, dropping the ball then getting a yellow card for a tip tackle on Blues flanker Tom Robinson.
Naholo was likely to play against the Hurricanes on Friday night but there is no chance of that happening now.
The Highlanders, who name their team today, are lucky to be able to call on the likes of Richard Buckman or Matt Faddes to fill the absence of Naholo.
He is the second winger the Highlanders have lost to a serious injury this season. Fellow Fijian Tevita Nabura succumbed to a knee injury a couple of days after the first pre-season game in early February.
Nabura has not been replaced, and no replacement was named for Naholo yesterday.