After a dreary 75 minutes, the match sprang into life with spectacular goals from Michael Gray and Kevin Kyle earning Wolves their fourth away win of the season.
Palace boss Neil Warnock seems to have lost his way. After steering the Eagles to a 15-match unbeaten run, Palace have now gone six without a win.
A poor first half was not without chances falling at both ends. The Eagles' best chance came on ten minutes following a long throw-in into the goalmouth by Lee Hills, nodded on by Mark Hudson, but Tom Soares perfectly placed headed past the wrong side of the post.
Although possession was even, Wolves engineered the better chances. It would not have been flattering if they had gone in at half-time with a two or three-goal lead as Stephen Elliott had a couple of the chances and Jody Craddock on 20 minutes headed wide at an open goal following Gray's corner.
On the stroke of half-time Sylvan Ebanks-Blake set up Elliott, but the former Sunderland hitman fluffed his chance again, as his mis-timed shot bobbled safely to Palace keeper Julian Speroni.
Perhaps a half-time talking-to from both managers might lift the start of the second half, but unfortunately not.
Wolves, who finished the first half the stronger, seemed to have dropped the tempo a bit while Palace were simply unable to get their act together.
Warnock made two substitutions as Paul Ifill and Clinton Morrison came off the bench.
Midway through the second half Shefkii Kuqi should have done better with Ifill's cross, but instead he misdirected his header over the bar.
Kuqi didn't last long after that and Warnock made his final substitution with Jamie Scowcroft in to the action.
The match was going nowhere, but Gray had other ideas with 14 minutes left, the evergreen midfielder picked up a pass from Karl Henry and from 25 yards out hit an absolute screamer past Peroni and into the far top corner.
Clinton Morrison forced a fine goalline save from Wayne Hennessey, but the Wolves keeper didn't stay around much longer as he left the field somewhat dazed after a collision with Hudson and Graham Stack took over for the final five minutes.
But substitute Kyle ensured the points for Wolves in 89 minutes with a fine volley from 20 yards, after Hudson lost out by misjudging the bounce of the ball.