Leicester striker Matty Fryatt bagged the only goal of the game - and his third in four starts for the Foxes - as Wolves were beaten at the Walkers Stadium.
Former Walsall frontman Fryatt, who was Craig Levein's last signing before being sacked, gave the currently managerless Foxes a second successive Championship victory for the first-time this season.
Meanwhile, Wanderers boss Glenn Hoddle came under attack from disillusioned travelling fans who chanted "Hoddle for England" and "Hoddle for Leicester".
But it had been the visitors who threatened first as defender Rob Edwards chanced his arm but shot over the crossbar after Patrick Kisnorbo had gifted possession.
Leicester responded through Fryatt who beat goalkeeper Stefan Postma in a 50-50 challenge outside the box, only to tumble and see Joleon Lescott clear the loose ball.
Moments later and City should have scored but Iain Hume could only sidefoot the ball directly at Postma when inches out.
At the other end, Kenny Miller beat defender Richard Stearman but not goalkeeper Rab Douglas after cutting in from the left ahead of Postma flapping at a Gudjonsson corner from the right, although Paddy McCarthy could only volley over from close range.
McCarthy proved his worth to the Foxes moments later though as he courageously blocked a Frankowski shot.
But the half ended with Fryatt and Postma going chest to chest after the Dutchman was forced to save at the feet of the on-rushing striker.
Into the second half and both sides ran out unchanged with Leicester soon on the offensive, pressurising Wolves left-back Lee Naylor into a pass back to Postma who was fooled by a bobbling ball and swung his kick wildly to concede a corner.
From Gudjonsson's flag-kick, Gabor Gypes was forced to shepherd the ball behind for a second corner which would prove fruitless.
Douglas was surprised with 50 minutes gone after a Rohan Ricketts free-kick from the left channel was flicked on by Miller with the ball then rebounding freakishly off the turf to hit the goalkeeper on the chest before being launched to safety by the Foxes defence.
Wesolowski warmed Postma's gloves with an 18-yard effort out of the left channel before Hume's booming cross from the right was met by a Fryatt header caught by Postma.
But opposite number Douglas was taking no chances with a Miller shot from 18 yards which was tipped around the goalkeeper's lefthand post.
With 23 minutes remaining Wolves midfielder Denes Rosa was introduced as replacement for Carl Cort as Wanderers switched from a 4-3-3 formation to 4-4-2 with Miller and Frankowski up front.
But with 20 minutes to go, McCarthy met a Gudjonsson corner from the right with a thumping header which Postma fumbled and Fryatt stabbed home.
And plenty of courageous defending, from McCarthy and Patrick Kisnorbo in particular, proved enough to see Leicester home.
Teams
Leicester Douglas, Stearman, McCarthy, Kisnorbo, Johansson,Maybury, Gudjonsson, Wesolowski, Hughes, Hume (O'Grady 74),Fryatt.
Subs Not Used: Smith, Gerrbrand, Hammond, Williams.
Goals: Fryatt 70.
Wolverhampton Postma, Edwards, Lescott, Gyepes, Naylor,Ricketts, Ince, Kennedy, Miller (Ganea 85), Cort (Rosa 66),Frankowski.
Subs Not Used: Oakes, Craddock, Anderton.
Att: 21,358
Ref: L Probert (Gloucestershire).