Joao Gomes and Jorgen Strand Larsen's responses to Trevoh Chalobah's opener had Gary O'Neil's men 15 minutes away from that elusive three-point haul, only for Chalobah's fellow Chelsea graduate Marc Guehi to take advantage of a sleeping Old Gold backline late on.
With Southampton's first win of the season over Everton bumping Wolves down to the bottom of the Premier League rankings, Gary O'Neil's men hardly needed any more motivation to get off the mark themselves against a Palace side without Eberechi Eze and Adam Wharton.
Both teams battled hard in the first half and made a few inroads, but a poor final ball or lack of end product was proving to be both sides' downfall, and one golden chance for Jean-Philippe Mateta was on its way in before being comically blocked by teammate Chalobah.
However, the Chelsea loanee quickly rectified that error with a brilliant finish from a tight angle on the hour mark to put the visitors ahead, capitalising on some apparent miscommunication between Jose Sa and Strand Larsen.
The latter almost immediately made amends, though, calmly finishing through the legs of Dean Henderson following an error from none other than Chalobah, before Gomes's crisp finish put the hosts on the brink of a long-awaited PL triumph.
Guehi capitalised on more shoddy set-piece defending from the hosts to level the scores again, though and Palace could have nicked all three points right at the death had Mateta's strike not been disallowed for a foul on Sa, who had two hands on the ball before being clattered into by Daniel Munoz.
Still 20th in the standings as one of just two sides without a win this term - the other being Ipswich Town - Wolves have at least cut the gap to 19th-placed Southampton down to one point, while 17th-placed Palace are two points above the dotted line.
WOLVES VS. CRYSTAL PALACE HIGHLIGHTS
Trevoh Chalobah goal vs. Wolves (60th min, Wolves 0-1 Palace)
Redemption!
Chalobah got in the way of Mateta's goal-bound strike in the first half, but the on-loan Chelsea defender atones for that incident with a brilliant finish from a tight angle after Wolves failed to deal with a Will Hughes free kick.
Sa came out to collect the delivery, but Strand Larsen took it away from his goalkeeper, heading it to the back stick where Chalobah was waiting. Judging by Sa giving his striker an earful, it would seem that he gave a shout but was ignored by Strand Larsen.
Jorgen Strand Larsen goal vs. Palace (67th min, Wolves 1-1 Palace)
Zero to hero for Strand Larsen, hero to zero for Chalobah!
The Palace defender makes an absolute meal of intercepting a long punt forward, setting Matheus Cunha away two-on-one, and the Brazilian feeds Strand Larsen to coolly slot home the leveller through Henderson's legs.
Joao Gomes goal vs. Palace (72nd min, Wolves 2-1 Palace)
A string to the Wolves bow - Gomes breaks out the archer celebration and even engages in a bit of shadow-boxing after completing the hosts' turnaround!
It all starts from a sublime turn from Mario Lemina, who proceeds to set Cunha away, and the Brazilian drives forward before picking out Goncalo Guedes on the left-hand side.
The Portuguese smartly cuts back for the arriving Gomes, who hits it first time and sees his perfectly-placed strike nestle into the bottom corner at Henderson's near post.
Marc Guehi goal vs. Wolves (77th min, Wolves 2-2 Palace)
Who could have predicted this goal-fest at the end of a dull first half?!
Wolves are undone by a set-piece again, as Munoz flicks a corner on to the back stick, where Guehi drifts in behind the Old Gold defence to crash home the leveller from a yard out.
MAN OF THE MATCH - MATHEUS CUNHA
Expect Wolves to be inundated with offers for Cunha regardless of whether they are participating in the top tier next year, as the Brazilian was key to the hosts' two goals on the day, teeing up Strand Larsen with a perfect pass before driving his team forward for the second.
In total, three of Cunha's four key passes led to big chances, but a mention must also go to scorer Gomes in the middle of the park.
WOLVES VS. CRYSTAL PALACE MATCH STATS
Possession: Wolves 57%-43% Crystal Palace
Shots: Wolves 11-19 Crystal Palace
Shots on target: Wolves 6-7 Crystal Palace
Corners: Wolves 3-6 Crystal Palace
Fouls: Wolves 7-9 Crystal Palace
WHAT NEXT?
Hosting their second basement battle in as many weeks next weekend, Wolves are at home to Southampton on November 9 in their last fixture before the international break - surely a magnificent chance for that first victory - the same day that Palace welcome Fulham to Selhurst Park for a London derby.