Tommy Miller kept Town alive in the Play-Off chase with a fantastic last minute free-kick at Molineux.
The midfielder curled a beauty over the Wolves wall to leave Wayne Hennessey with no chance.
Sylvan Ebanks-Blake's 73rd minute strike looked to have proved decisive, the striker spinning on the edge of the Town box before firing past Stephen Bywater until Miller struck with virtually the last kick of the game.
Town made one change from the team that started in the derby win over Norwich last weekend, Jon Walters coming in for the injured Shefki Kuqi.
Blues started brightly and Walters fired over from a good position after Tommy Miller had put him in, while at the other end Ebanks-Blake was wide with a left foot shot from 20 yards.
David Wright was quick to join the attack at every opportunity and the full-back brought a save from Wayne Hennessey in the home goal after weaving his way into the box.
Jason De Vos and Stephen Bywater combined to deny Andy Keogh, the Town 'keeper heading the ball away from danger.
Pablo Counago almost released Walters with a reverse pass, before Ebanks-Blake wasted the best opening of the first-half, the striker diverting a cross over the bar from three yards out.
Seyi Olofinjana failed to trouble Bywater with a 25 yard drive and Jody Craddock was close with an overhead kick from a corner but Town continued to create openings at the other end, Miller a yard wide with one effort.
Counago began to have more of an impact on the game and swapped passes with Walters only to see his effort deflected away by Hennessey.
Wright set up Walters with a cross, the striker seeing his first effort blocked and then a follow up effort held by Hennessey at his near post.
Keogh headed over, Matt Jarvis shot at Bywater and Olofinjana blasted wide while Blues responded with Counago's shot blocked, Alan Quinn's effort from the rebound going over the bar.
Quinn had another effort half saved by Hennessey, who looked relieved to see the ball deflected just wide by his hand as an entertaining first 45 minutes came to an end.
Michael Kightly replaced Michael Gray at half-time, Wolves' second change following Gary Breen taking over from the injured David Edwards on 17 minutes.
Alex Bruce picked up the first yellow card of the game, Kightly's free-kick hacked clear by the Town rearguard.
Walters then sent a shot over the bar from Owen Garvan's pass as both sides looked for that crucial first goal, Danny Haynes' shot blocked by George Elokobi. Quinn almost in from Counago's touch.
Kightly almost got in on the end of a right wing cross, then Ebanks-Blake was twice denied before finding the net on 73 minutes, the former Plymouth striker spinning and firing past Bywater from the edge of the box.
Alan Lee replaced Haynes for the last 15 minutes, Jordan Rhodes then coming on for Counago to freshen things up in attack. Kevin Kyle on for Ebanks-Blake.
Foley was yellow carded for a foul on Rhodes as the teenager tried to break away before the drama of the last minute. Lee was fouled by Breen 25 yards out and Miller took centre stage to grab a point.
The draw leaves Town three points behind Crystal Palace in sixth place and two ahead of Wolves, who have a game in hand.
Wolves: Hennessey, Foley, Collins, Craddock, Elokobi, Gray (Kightly 46), Olofinjana, Edwards (Breen 17), Jarvis, Ebanks-Blake (Kyle 86), Keogh. Subs not used: Elliottt, Stack, Kyle.
Town: Bywater, Simpson, De Vos, Bruce, Wright, Haynes (Lee 77), Garvan, Miller, Quinn, Walters, Counago (Rhodes 82). Subs not used: Colgan, Sito, Williams. Booked: Bruce.
