Mick McCarthy enjoyed a winning return to Molineux as his Ipswich side piled further misery on former club Wolves.
McCarthy, who was sacked by Wolves in February, received a great ovation from the home crowd before kick-off.
And he left with a fifth win in seven matches, moving Ipswich one point behind 17th-placed Wolves.
Left-back Aaron Cresswell put Ipswich ahead from a well-worked move and the points were secured by on-loan QPR striker DJ Campbell's composed finish.
McCarthy was joined in the away dugout by assistant Terry Connor, who succeeded the Yorkshireman at Molineux before he was replaced by Norwegian Stale Solbakken in the summer.
But Solbakken remains under increasing pressure, with a chorus of boos ringing around Molineux at full-time as Wolves' miserable season continued.
Wolves should have been awarded a penalty after just two minutes when Kevin Doyle was bundled over by Luke Chambers, who went unpunished.
But there was very little to trouble either goalkeeper until Cresswell opened the scoring in style.
The left-back ventured forward and, having laid the ball off, continued his run; receiving it back before finishing right-footed inside the far post.
After the break, Wolves striker Sylvan Ebanks-Blake, a reported January target for McCarthy, sent a teasing ball across goal which Doyle failed to connect with.
But the game was lit up on the hour mark by Campbell's second. He raced onto Bradley Orr's long ball, before calmly firing a composed finish under Wolves goalkeeper Carl Ikeme.
It was Campbell's 10th goal in 16 appearances for Ipswich as Town celebrated their first win at Molineux in 21 years.
Ipswich boss Mick McCarthy:
"I would be lying if I said it was nothing special because it is.
"My last game here (a 5-1 defeat against West Brom) I had to go out of the back door and I will never forget that. It was a real horrible day for me.
"So to have won and to have had the applause and ovation I got I think shows what most Wolves fans really thought about me as opposed to the minority that would not let me leave by the front door."
Wolves manager Stale Solbakken:
"We started okay but after Ipswich scored it looked like an uphill battle. For me when you are under an amount of pressure like you are now then it is about having to win the battle with yourself.
"I think that you have to go out and make sure that you do what you think is right. I think at the moment we look a little bit scared.
"That must not be the case. We must show everyone that we have the character and at the moment the two worst performances of the season have been the two last ones. It can't get any worse."