Paul Peschisolido struck in injury-time to keep Sheffield United in control of the fight for third position in Division One after an enthralling clash at Bramall Lane.
Peschisolido had opened the scoring after just two minutes but the Blades looked destined for a fourth home defeat of the season following goals from George Ndah and Dean Sturridge, who struck twice.
But Peschisolido was allowed to break clear in time added on and the striker beat Wolves goalkeeper Matt Murray with a quality volley to keep Neil Warnock's side above the Molineux club in the table.
Peschisolido had come close to finding the net within 10 seconds of the kick-off - collecting a loose pass and running at goal before firing a 20-yard shot narrowly wide - but the striker made no mistake with a second opportunity moments later.
Joleon Lescott's clearance was charged down by Peschisolido on the touchline, and the United forward ran in-field to the corner of the box before lifting a perfect lob over keeper Murray.
Wolves suddenly forced an equaliser with a speedy counter-attack.
Sturridge collected the ball on the halfway line and fed a perfect pass to Ndah who outpaced the United defence and buried a low shot through Paddy Kenny's legs.
The United backline was caught out for the second occasion in injury-time, allowing Sturridge to punish some dreadful marking.
The Wolves forward was left alone on the edge of the six-yard box, and he drove a hopeful cross from Alex Rae past Kenny's outstretched hand.
Wolves defender Lescott handed the Blades an equaliser in the 55th minute.
Kabba chased a long pass into the box but, with the ball heading out of play, Lescott needlessly clattered into the back of the striker.
Michael Brown took responsibility for the penalty and hammered the ball past Murray.
But five minutes later, the Bramall Lane crowd was silenced again by the second penalty of the game.
Robert Page brought down Colin Cameron inside the area, and Sturridge sent Kenny the wrong way with a shot into the side of the net.
Murray kept his side ahead with a brilliant save to keep out Rankine's
goalbound header, and the Wolves keeper excelled again with 20 minutes to go, tipping Peschisolido's near-post header over the crossbar.
The game looked to be getting away from United, but in the second minute of injury-time Peschisolido beat Murray with a stunning 25-yard volley which salvaged an unlikely point for the Blades.
Sheff Utd: Kenny, Curtis, Murphy, Page, Kozluk, Rankine,
Montgomery, Brown, Morrison, Kabba, Peschisolido. Subs: Asaba,
Allison, Ndlovu, Jagielka, Tonge.
Wolverhampton: Murray, Edworthy, Lescott, Butler, Naylor,
Cooper, Cameron, Rae, Kennedy, Sturridge, Ndah. Subs: Newton,
Pollet, Miller, Clingan, Oakes.
Referee: J P Robinson (E Yorkshire).