Adlene Guedioura returned to Molineux to hit the winner for Nottingham Forest against his former club, who have now gone eight matches without a victory.
Hosts Wolves had taken an early lead when the ball deflected to Bjorn Sigurdarson, who finished superbly.
Forest soon levelled as Billy Sharp controlled a long pass and slid his shot under goalkeeper Carl Ikeme.
Both sides had chances in a fluctuating encounter before Guedioura fired in an unstoppable shot from 25 yards.
Wolves might have thought their fortunes were changing when Jermaine Pennant's attempted pass to Kevin Doyle deflected off a Forest defender into the path of Sigurdarson, who took full advantage.
But Doyle had a shot blocked and Forest soon levelled when Sharp collected Henri Lansbury's long, diagonal pass and recorded his fourth league goal of the season.
The first half continued to provide opportunities for both sides, Simon Cox shooting narrowly wide for the visitors and Forest keeper Lee Camp denying Sigurdarson with a superb save from point-blank range.
However, Wolves started slowly after the break and it was not long before they were behind again.
Guedioura's ferocious shot into the top corner was worthy of winning any match but the Algeria international did not celebrate against the club where he spent three seasons - although his strike was applauded by some sections of the home support.
A rare Wolves attack resulted in Bakary Sako shooting over the crossbar and substitute Sylvan Ebanks-Blake headed straight at Camp late on, but Stale Solbakken's side now lie 17th after their fourth defeat in five matches this month, while Forest are on the fringes of the play-off places.
Wolves manager Stale Solbakken:
"I was not happy with the way we defended. It was too open and we allowed them to counter-attack.
"After conceding the second goal we looked like a team that had not won for a while.
"Safe balls went wrong and many players made the wrong decision.
"We need to believe in what we are doing and I think it was a bit too wild west sometimes."
Nottingham Forest boss Sean O'Driscoll:
"In the first half it was end to end and it could have been any score.
"We had a discussion at half-time about changing things. They wanted to keep going as we were but as the manager you think we can't be that open.
"But we are still a threat on the break and that proved to be the case.
"We are a team who can score but we can also concede so we want to keep the one and negate the other. We are a work in progress."
Live Text Commentary
Full Time The referee blows for the end of the match.90:00 +4:57
Bakary Sako takes a outswinging corner.90:00 +4:23
Bakary Sako takes the outswinging corner, clearance made by Alan Hutton.90:00 +3:04 Substitution
Substitution Billy Sharp goes off and Brendan Moloney comes on.90:00 +2:22
Anthony Forde produces a cross, Bjorn Sigurdarson takes a shot. Lee Camp makes a save.90:00 +0:43
The assistant referee flags for offside against Chris Cohen. Carl Ikeme takes the indirect free kick.89:36
Anthony Forde gives away a free kick for an unfair challenge on Dexter Blackstock. Alan Hutton takes the free kick.88:36 Substitution
Substitution Anthony Forde on for Kevin Foley.88:08
Foul by Chris Cohen on Kevin Foley, free kick awarded. Free kick taken by Roger Johnson.86:32 Substitution
Substitution Guy Moussi is brought on as a substitute for Henri Lansbury.85:23
Bakary Sako takes a inswinging corner.83:30
The ball is sent over by Bakary Sako.80:26
Unfair challenge on Bjorn Sigurdarson by Simon Gillett results in a free kick. Bakary Sako has an effort direct from the free kick, Lee Camp makes a save.73:05 Substitution
Substitution David Davis on for Tongo Doumbia.73:05 Substitution
Substitution Sylvan Ebanks-Blake replaces Jermaine Pennant.73:05
Free kick awarded for a foul by Adlene Guedioura on Jermaine Pennant. Bakary Sako produces a strike on goal direct from the free kick.71:06
Foul by Stephen Ward on Henri Lansbury, free kick awarded. Free kick taken by Lee Camp.69:43
Inswinging corner taken by Jermaine Pennant from the left by-line.69:03
Free kick awarded for an unfair challenge on Dexter Blackstock by Tongo Doumbia. Lee Camp takes the free kick.67:58
Dexter Blackstock gives away a free kick for an unfair challenge on Kevin Foley. Free kick taken by Kevin Foley.
Foul by Kevin Doyle on Henri Lansbury, free kick awarded. Direct free kick taken by Lee Camp.66:16
Chris Cohen takes a shot. Save by Carl Ikeme.65:46
Unfair challenge on Billy Sharp by David Edwards results in a free kick. Alan Hutton takes the direct free kick.64:32 Substitution
Substitution (Nottm Forest) makes a substitution, with Dexter Blackstock coming on for Simon Cox.60:32
Outswinging corner taken by Jermaine Pennant.59:11
Simon Cox gives away a free kick for an unfair challenge on Roger Johnson. Free kick taken by Roger Johnson.56:29 Goal scored
Goal! - Adlene Guedioura - Wolves 1 - 2 Nott'm For Adlene Guedioura finds the back of the net with a goal from long range to the top left corner of the goal. Wolverhampton 1-2 Nottm Forest.49:26
Unfair challenge on Henri Lansbury by Bakary Sako results in a free kick. Free kick taken by Adlene Guedioura.47:36
Simon Cox takes a shot. Save by Carl Ikeme.46:38
Adlene Guedioura takes a shot from just outside the penalty area which clears the crossbar.46:23
Free kick awarded for an unfair challenge on Roger Johnson by Henri Lansbury. Roger Johnson takes the free kick.45:01
The second half kicks off.45:00 +1:11 Half time
Half Time The ref blows to end the first period.42:41
Henri Lansbury takes a shot. Save by Carl Ikeme. Corner taken by Chris Cohen from the right by-line played to the near post, clearance made by Roger Johnson.40:47
Stephen Ward restarts play with the free kick.40:47 Booking
Booking Henri Lansbury receives a caution.40:38
Henri Lansbury concedes a free kick for a foul on Bakary Sako.40:02
Bjorn Sigurdarson takes a shot. Lee Camp makes a save. David Edwards takes a shot. Save by Lee Camp.39:09
Outswinging corner taken by Bakary Sako from the left by-line played to the near post.38:32
Tongo Doumbia takes a shot. Blocked by Alan Hutton.38:13
Bjorn Sigurdarson takes a shot. Danny Collins gets a block in.36:50
Direct free kick taken by Lee Camp.36:50 Booking
Booking Caution for Kevin Doyle.36:38
Free kick awarded for a foul by Kevin Doyle on Dan Harding.36:11
Simon Cox is caught offside. Christophe Berra takes the free kick.31:51
Simon Cox takes a shot from just inside the penalty box which clears the crossbar.29:05
Effort on goal by Billy Sharp from just inside the penalty area goes harmlessly over the target.27:08
Inswinging corner taken left-footed by Bakary Sako.27:01
The ball is delivered by Bakary Sako.25:24
Foul by Tongo Doumbia on Henri Lansbury, free kick awarded. Danny Collins takes the free kick.22:47
Free kick awarded for an unfair challenge on Chris Cohen by Kevin Foley. Dan Harding takes the free kick.22:06
Henri Lansbury concedes a free kick for a foul on Tongo Doumbia. Christophe Berra takes the direct free kick.20:12
Bakary Sako takes a shot from just inside the penalty box which clears the bar.19:00
Unfair challenge on Stephen Ward by Henri Lansbury results in a free kick. Stephen Ward takes the direct free kick.18:34
Henri Lansbury takes a shot from long distance which goes wide of the right-hand post.17:04
Simon Cox has an effort at goal from just inside the box that misses to the right of the target.15:04
The assist for the goal came from Alan Hutton.15:04 Goal scored
Goal! - Billy Sharp - Wolves 1 - 1 Nott'm For Billy Sharp finds the back of the net with a goal from the edge of the penalty box to the bottom left corner of the goal. Wolverhampton 1-1 Nottm Forest.13:47
Adlene Guedioura has a shot and missed to the right of the net.11:56
Foul by Tongo Doumbia on Chris Cohen, free kick awarded. Chris Cohen crosses the ball in from the free kick, clearance by Stephen Ward.10:13
Henri Lansbury gives away a free kick for an unfair challenge on David Edwards. Free kick taken by Carl Ikeme.9:13
Kevin Doyle takes a shot. Elliott Ward gets a block in.7:52
Unfair challenge on Simon Gillett by Tongo Doumbia results in a free kick. Free kick taken by Simon Gillett.5:49
The referee blows for offside. Direct free kick taken by Jermaine Pennant.4:37 Goal scored
Goal! - Bjorn Sigurdarson - Wolves 1 - 0 Nott'm For A goal is scored by Bjorn Sigurdarson from just inside the penalty area to the bottom right corner of the goal. Wolverhampton 1-0 Nottm Forest.3:36
Corner from the right by-line taken by Bakary Sako, save made by Lee Camp.2:56
Short corner taken by Chris Cohen.2:18
Stephen Ward crosses the ball, Kevin Doyle has a volleyed shot. Lee Camp makes a save.0:32
Foul by Elliott Ward on Kevin Doyle, free kick awarded. Direct effort from the free kick comes in from Bakary Sako, save made by Lee Camp.0:00
The referee gets the match started.
Live data and text provided by our data suppliers