After going behind following Emmanuel Adebayorâ€™s 23rd minute penalty, the home side fought back through Nenad Milijas on the half-hour mark before David Edwards grabbed the winner in the 57th minute with a neat finish.
It was Wolvesâ€™ first win in nine games and only their second for the season as they moved a game clear of West Ham whilst City dropped their second match in a row to stay in fourth.
Venue: Molineux Stadium, Wolverhampton
Referee: Mike Dean
Yellow cards: WW - Stephen Hunt 59â€™
MC - Pablo Zabaleta 87â€™, Mario Balotelli 90â€™
Marcus Hahnemann (gk), Christophe Berra, Stephen Ward, Richard Stearman, Kevin Foley, Stephen Hunt (Elokobi 65â€™), Karl Henry, Matt Jarvis (Mouyokolo 88â€™), Nenad Milijas (Mancienne 83â€™), David Edwards, Kevin Doyle
Subs - Wayne Hennessey (gk), George Elokobi (65â€™), Michael Mancienne (83â€™), Steven Mouyokolo (88â€™), Jelle van Damme, Sylvan Ebanks-Blake, Steven Fletcher
Joe Hart (gk), Kolo Toure, Vincent Kompany, Micah Richards (Jo 84â€™), Jerome Boateng, Gareth Barry (Johnson 68â€™), James Milner, David Silva, Emmanuel Adebayor (Zabaleta 77â€™), Yaya Toure, Mario Balotelli