A Nouha Dicko goal was the difference at Molineux as Wolves secured the three points to put more pressure on Nottingham Forest in their quest for Championship safety.
Dicko, who was drafted into the line-up late on because of injury, struck just after the hour mark but The Reds will be rueing missed chances on a night when their other relegation rivals also lost.
Danny Fox was shown a red card for two bookings late on but Forest will be disappointed not to take anything from the game in which they dominated possession but couldn't convert their opportunities.
Mark Warburton made three changes to the side which drew 1-1 with Preston on Saturday, all of them coming in the back four. Matt Mills returned to the heart of the defence in place of Joe Worrall with Michael Mancienne and Armand Traore replacing Eric Lichaj and Dani Pinillos.
Wolves were forced into a change before a ball was kicked as star man Helder Costa picked up an injury in the warm-up, meaning that Dicko came into the Wolves front line and Jack Price took a place on the bench.
The home side started on the front foot and were playing some neat passing play on the edge of the Forest box. Ivan Cavaleiro had their first attempt on goal after ten minutes, playing a one-two with Matt Doherty but scuffing his shot straight at Jordan Smith.
The Reds were also playing well, passing the ball around confidently at the back and working the ball neatly towards Andy Lonergan's goal. Britt Assombalonga showed some quick footwork to force Forest's first attempt on goal on 17 as he danced inside a defender and shot at the near post but Lonergan tipped it wide.
Wolves nearly found the opener on 24 as Cavaleiro found space on the right and drilled a low cross in front of goal which evaded the men at the near post, hit David Vaughan's shins and went agonisingly wide.
Another low cross from the home side on 39, this time from Doherty from the left, led to Dicko flicking an effort towards goal at the near post but it rattled the side-netting as The Reds had a lot of possession but were unable to create any clear-cut chances.
Wolves had the first effort of the first half as Ben Marshall curled a delicious free kick just wide of Smith's right-hand post before a pivotal minute of action just after the hour saw the home side take the lead.
Following a Wolves corner, Forest broke forward quickly with Ben Brereton down the right. He found Zach Clough free in the middle and the forward went down under a double challenge from Cavaleiro and Lonergan. Nothing was given and Assombalonga was quickest onto the loose ball. Forest's number nine fired at goal and somehow Conor Coady got back onto the goal line and hooked clear.
The clearance sparked a breakaway for the home side with Andi Weimann in space down the right flank. He played a low ball across the face of goal where Dicko was arriving to tap home past a helpless Smith.
The introduction of Mustapha Carayol and Jamie Ward to the Forest attack on 65 minutes almost paid immediate dividends as Carayol's cross from the left found Ward arriving at the back post and his volley was well held by Lonergan.
The Reds were pushing hard for an equaliser but also had to be alert at the back. Weimann had an effort on 71 drift just wide and substitute Jon Dadi Bodvarsson tested Smith from the edge of the box on 82.
A Wolves break in injury time saw Morgan Gibbs-White brought down by Fox, but the referee played advantage allowing Bodvarsson the chance to shoot at goal, when he should have played in Weimann, and Smith saved comfortably.
In the next break in play referee James Linington showed Fox a second yellow card and he was sent off but it didn't affect the game as Forest pressed forward.
There is always one more chance in the game and it arrived in the 94th minute for Carayol. Ward played a deep cross to the back post where Carayol was arriving. He got to the ball in front of Kortney Hause and volleyed the ball towards goal and Lonergan kept it out to help the home side secure the three points.
Forest: Smith, Mancienne, Mills, Fox, Traore, Cohen (c), Vaughan, Brereton (Vellios 79'), Clough, Osborn (Carayol 65'), Assombalonga (Ward 65')
Unused subs: Evtimov, Lichaj, Tshibola, Cash
Bookings: Fox 56', 90'
Red card: Fox 90'
: Lonergan, Doherty, Hause, Batth (c), Coady, Edwards, Evans, Marshall (Saiss 76'), Cavaleiro (Gibbs-White 67'), Dicko (Bodvarsson 76'), WeimannWolves
Unused subs: Burgoyne, Williamson, Saville, Price
Goal: Dicko 62'
Bookings: Batth 69', Edwards 76'
Referee: James Linington
Attendance: 21,408 (Away 1,260)