Varney (right) has been a key player since joining on loan from Derby
By Sam Sheringham
Blackpool returned to the top half of the Premier League after their first victory over Wolves for 42 years.
The Seasiders took an early lead in spectacular fashion when Luke Varney controlled a long ball and smashed a volley into the far top corner.
Marlon Harewood made it 2-0, bundling home after Varney had beaten goalkeeper Marcus Hahnemann to a corner.
Wolves striker Kevin Doyle reduced the deficit with a header from George Elokobi's cross but Blackpool held on.
It was a ninth defeat in 11 games for Wolves which leaves Mick McCarthy's men rooted in the bottom three.
Blackpool fortunate to score winner - Holloway
And although the visitors showed plenty of appetite for the fight in the second half, McCarthy must be concerned by their lack of cutting edge up front.
Blackpool boss Ian Holloway, in contrast, will be delighted to see his side register only their second home league victory of the season and end a run of three games without a win.
Perhaps it was the presence of Prince William in the crowd which inspired Blackpool to make such a stunning start to the game.
A precise long ball forward from Ian Evatt was chested down on the left touchline by Varney, who unleashed a dipping volley from 20 yards over Wolves keeper Hahnemann.
The visitors responded well, with Matt Jarvis a constant threat on the left. One burst led to the winger reaching the byline, but his cut-back eluded all his team-mates.
Hahnemann gave Wolves fans a scare shortly afterwards when he allowed a long-range shot from Evatt to slip through his fingers, but the goalkeeper recovered in time to collect the ball as it trickled towards the goal.
Hahnemann was at fault again as Blackpool doubled their lead with a scrappy goal just before half-time.
The former Reading keeper was beaten to the ball in the air by Varney, whose nod down was poked over the line by Harewood despite the best efforts of Jarvis on the goal-line.
Wolves lacked clinical approach - McCarthy
Wolves' players complained to referee Mark Clattenburg that Varney had used an arm to lever himself above Hahnemann but the goal was allowed to stand.
McCarthy made a change at half-time, throwing on Sylvan Ebanks-Blake to join Doyle up front and the duo almost combined for a goal as Doyle's low cross flashed just beyond the reach of his strike partner.
But with the visitors committed to attack, gaps started to appear at the back, with DJ Campbell twice getting himself into good positions only to squander the chances.
Midway through the half, Wolves substitute Nenad Milijas cut inside from right and unleashed a low left-footed shot which brushed Richard Kingson's fingertips before smashing into the upright.
Play soon switched to the other end as Charlie Adam threaded a pass into Varney's path, but the winger sliced his shot wide.
Kingson had to be alert again to claw away an Ebanks-Blake effort at his near post but the Ghana keeper could do little to keep out Doyle.
With Evatt off the field following treatment, Elokobi found space on the left and whipped a cross into the danger area, and the Republic of Ireland striker crashed his header home.
Doyle was given the space to try his luck again in stoppage-time but his long-range effort on the turn fizzed past the post as the curtain came down on another painful afternoon for McCarthy and his troops.
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