A stirring second-half fightback saw Wolves move back into the top six, leaving Ipswich to rue a spate of missed chances.
Town could have been out of sight at half time, but only led 2-1 and Wolves made them pay with some clinical finishing.
The home side went ahead in just the second minute, Marcus Bent heading home after Wolves keeper Matt Murray had missed a Darren Ambrose free-kick.
Wolves drew level on 11 minutes when Andy Marshall could only parry a Colin Cameron shot and Kenny Miller swooped to fire home.
Tommy Miller fired wide when well placed for Ipswich and Darren Bent then nodded wide of an open net after Ambrose had set him up.
Jim Magilton almost found Marcus Bent before Ambrose shot wide from just six yards when Murray dropped another cross.
Town got the goal their pressure deserved on 45 minutes when skipper Matt Holland - on his 300th Ipswich appearance - fired a 30 yard free-kick home.
Ambrose fired over early in the second half before Wolves snatched an equaliser when Mark Kennedy's fine cross gave Kenny Miller an easy finish.
The home side seemed shocked to be level in a game they had dominated, but worse was still to come.
The visitors went ahead after 74 minutes with a truly superb strike - Lee Naylor looping a 25-yard volley over Marshall after a corner had been headed out to him.
Ipswich had to chase the game now, and Wolves took advantage with a text book counter-attack goal on 81 minutes.
Cameron sent George Ndah racing clear of Town's undermanned defence and he coolly rounded Marshall before slotting home from an angle.
It concluded a great game for the neutrals, and the good news is these teams meet to do it all again in just two weeks time.