Michael Kightly lashed home a confident finish in the 76th minute to send the 5,500 travelling fans into raptures as Wolves secured a vital three points.
But Billy Davies' Forest were unlucky not to claim at least a point as they scrapped desperately for a result to bolster their hopes of avoiding the drop straight back down into League One.
Given the position of the two sides in the table, it was no surprise that Forest's defence was the more sternly tested in the opening exchanges.
But, with Wes Morgan in imperious form and Kelvin Wilson producing a vital challenge to deny Kightly a shooting chance in the box, the only real effort on goal that Wolves could muster in the opening 20 minutes was a high, rising long-range effort from Stephen Ward.
Sylvan Ebanks-Blake then edged closer with a bending, dipping 25-yard strike that dropped narrowly wide.
Forest's Chris Gunter was booked for a late, lunging tackle on Matt Hill - but, just before half-time, the on-loan Spurs full-back had a penalty claim rejected by referee Phil Crossley when he was brought down on the very edge of the box by Christophe Berra.
The Wolves defender did not escape punishment one minute into the second half, however, as he this time hauled down Chris Cohen on the edge of the box, earning himself a yellow card and giving Lewis McGugan the chance to smash a dangerous free-kick that was blocked in the box.
The second half, like the first, was also closely fought, with chances at a minimum.
Gary McSheffrey connected well with a dipping volley on the edge of the box, but it was always dropping over.
Both sides made a series of attacking changes off the bench - but it was Wolves who finally managed to break the deadlock. Substitute Sam Vokes cleverly laid off Ebanks-Blake's cross into the box for Kightly, who drove an unstoppable finish low into the bottom corner.
It could have been worse for Forest as Ebanks-Blake saw a scrambled effort cleared off the line by Wilson, after he picked up the rebound following a powerful shot from sub Andrew Keogh.
Keogh himself went close with a spectacular, looping 40-yard effort that almost caught Forest's on-loan Everton keeper Iain Turner off his line as it dropped inches wide of the post.