Adama Traore struck a stoppage-time winner for Wolves as Fulham's hopes of remaining in the Premier League suffered another significant blow.
Traore settled the game with a fierce angled drive with little time left.
Earlier, Wolves had been denied a goal when the video assistant referee ruled that Daniel Podence's arm was fractionally offside before he crossed for Willian Jose to head in.
Fulham stay 18th, a place and three points behind Newcastle.
Later, Fulham boss Scott Parker said, "I've been involved in the game for many years and that is a painful one tonight. When the game ends like it does, it's not a good feeling.
"We have had punches that should have knocked us out this season but they haven't done that. We have gone and beat some big teams and Arsenal is going to be a must-win, other games will be must-win but we will keep our resolve.
"You may think I am mad but I honestly believe in this team. What is ingrained in me is a desire, an effort and fight and my team showed that tonight. It's been fine margins all season, what's key is you get back up fighting.
"There's only one way we come back from this and that's come back fighting with your hands up, jabbing away. Never let anything sink us. I'm as low as the players tonight but I can guarantee you on Monday we'll be back in and I'll give everything."
