Marcus Bent's 10th minute goal for Ipswich kept George Burley's head above the relegation zone waves.
Town shrugged off the hangover of their FA Cup thrashing at the hands of Manchester City to continue their Premiership revival at the expense of Jean Tigana's Fulham.
Ipswich's best crowd of the season - 25,156 - saw their team climb out of the Premiership's relegation zone.
Burley made four changes to the team which capitulated on Sunday.
Marcus Stewart, Martijn Reuser, Titus Bramble and Fabian Wilnis made way for Alun Armstrong, Jamie Clapham, Mark Venus and Chris Makin.
It certainly did the trick as Fulham lost only their sixth league game since returning to the top flight as Division One champions.
Bent's seventh goal in eight games came after Alun Armstrong's effort looped off Zat Knight and fell for the ex-Sheffield United striker, who side-footed home.
Town goalkeeper Andy Marshall was soon busy at the other end - palming around the upright after his own defender Mark Venus miskicked and then saving at the second attempt from Steed Malbranque and Sylvain Legwinski.
But it was Ipswich who ended the first half the stronger side as John McGreal headed wide and then Bent saw his header saved by Edwin van der Sar.
At half-time Fulham boss Tigana tried to get his side back into the game by making a double substitution - sending on Barry Hayles and John Collins for Bjarne Goldbaek and Knight.
Yet within a minute of the restart the Londoners might have been two goals behind as lacklustre defending allowed the ball to reach Holland 20 yards from goal - but his shot swerved inches wide.
Collins came closest for Fulham in the second period when his free-kick was kept out by Marshall.
Fulham eventually went to three up front in a desperate bid to get the equaliser but it was Bent who should have wrapped up the points only for Van Der Sar to block his late shot.
Pundits everywhere were tipping Ipswich for relegation six weeks ago when they had just one league win to their names.
But 18 points from a possible 21, thanks in no small part to the goals of Bent, mean they stand a great chance of becoming the first side in 10 years to stay up having been bottom of the Premiership at Christmas.
Furious Fulham boss Tigana, meanwhile, refused to turn up to the post-match press conference.
He left his striker and French countryman Louis Saha to explain that the Cottagers chief was "very angry" with the performance.
Ipswich: Marshall, Makin, McGreal, Venus, Hreidarsson, Wright (Reuser 83), Holland, Peralta, Clapham, Marcus Bent, Armstrong (Stewart 69).
Subs Not Used: Sereni, Counago, Bramble.
Booked: McGreal.
Fulham: Van der Sar, Finnan, Melville, Goma, Brevett, Goldbaek (Collins 45), Knight (Hayles 45), Malbranque, Legwinski (Ouaddou 68), Marlet, Saha.
Subs Not Used: Taylor, Stolcers.
Booked: Goma, Finnan.
Att: 25,156
Ref: A Wiley (Burntwood).