Rohan Ricketts scored his first goal for Wolves to earn his side victory and put a serious dent in Reading's hopes of making the Coca-Cola Championship play-offs.
Ricketts, on loan from Tottenham, scored a late winner which was just reward for Wolves' domination at the Madejski Stadium.
Nicky Forster scored his ninth goal of the season to give the hosts an early lead but Leon Clarke levelled in the second half before Ricketts' intervention.
The result leaves Steve Coppell's Royals in seventh place, behind West Ham on goal difference, and with a difficult trip to Wigan next week.
Coppell made two changes to the side that lost at Cardiff. Nicky Shorey failed to shake off a knee injury so Andy Hughes came in at left-back and Glen Little started in midfield with Ricky Newman dropping to the bench.
Wolves boss Glenn Hoddle also made a couple of changes with Rob Edwards replacing Mikkel Bischoff and Ricketts in for the injured Mark Kennedy.
The visitors, now unbeaten in 17 Championship games, tried to get their fluent passing game going from the start but Reading refused to give them time to settle.
Wolves midfielder Seyi George Olofinjana tried his luck with an effort from distance that was never going to trouble Marcus Hahnemann in the home goal before Ki-Hyeon Seol forced the big American into a save.
The scare stung the hosts into life and Forster fired them in front with a delightful piece of skill after eight minutes. He met Dave Kitson's flick-on and lobbed a cushioned volley over Wolves goalkeeper Michael Oakes.
Ricketts almost levelled immediately but Hahnemann was equal to his effort before Wolves' Scotland internationals Kenny Miller and Colin Cameron were denied by the busy keeper.
Leon Clarke was next to threaten as Wolves continued to press but after racing clear his shot was blocked by Royals full-back Graeme Murty.
Olofinjana fizzed a long-range drive just wide of the post after half an hour and Seol went close from the edge of the area as the hosts finished the first half with their backs to the wall.
Wolves kept up the pressure after the restart and were back on level terms after 53 minutes.
Lee Naylor's inswinging corner was met by Clarke and his header took a wicked deflection of Kitson and gave Hahnemann no chance.
Coppell replaced Paul Brooker with former Wolves midfielder Ivar Ingimarsson as Reading tried to get to grips with the game. His introduction breathed life into the Royals and Kitson was unlucky with a header which just cleared the crossbar.
Ricketts narrowly missed the target from the edge of the area with 20 minutes left as Wolves showed no signs of settling for a point.
Coppell made his second tactical switch by sending on Les Ferdinand for Little with quarter of an hour left but he could do nothing to prevent Ricketts turning the game on its head with six minutes left.
He picked the ball up in midfield, ignored runners either side and cut inside Ibrahima Sonko before rolling the ball into the net.
Teams
Reading Hahnemann, Murty, Keown, Sonko, Hughes,
Little (Ferdinand 74), Sidwell, Harper,
Brooker (Ingimarsson 62), Forster, Kitson.
Subs Not Used: Convey, Newman, Young.
Booked: Ingimarsson.
Goals: Forster 8.
Wolverhampton Oakes, Naylor, Lescott, Craddock, Edwards,
Olofinjana, Cameron, Ricketts, Seol, Miller,
Clarke (Bischoff 90).
Subs Not Used: Cooper, Clingan, Cornes, Jones.
Booked: Olofinjana, Seol, Ricketts.
Goals: Clarke 53, Ricketts 84.
Att: 20,495
Ref: R Styles (Hampshire).