Palace moved back into touching distance with the automatic promotion places after a comfortable win against a Wolves side badly lacking in confidence and cohesion.
The Eagles dominated first half proceedings after David Davis' early run and shot had crashed back off the crossbar with Julian Speroni stranded.
Palace's 20 goal man Glenn Murray had already gone close at that point, rising highest to meet Andre Moritz's diagonal ball and nodding his header just wide. Yannick Bolasie was next to try his luck, with his familiar shoot-on-sight policy, as he returned a poor defensive clearance with interest, but his volley from the edge of the area flew over the bar.
Wilfried Zaha soon began to dazzle on the right flank, first beating Stephen Ward with ease and finding Moritz with his cross. Eight yards out the Brazilian really should have buried the chance but scuffed wide with the goal at his mercy. Then, the young England international linked with Jonathan Parr and met the Norwegian full-back's low cross with his side-foot but couldn't keep his shot under the crossbar.
Ian Holloway's side had controlled the first half an hour and finally got their reward when Moritz stepped up to curl home a delicious free-kick into Carl Ikeme's top corner. One soon became two for Holloway's men as Bolasie found Zaha unmarked in the centre of the pitch and ran on behind the Wolves defence to toe-poke the winger's through-ball home to double Palace's lead.
The excellent Danny Gabbidon had to be replaced during the interval and Aaron Martin stepped in, but was barely troubled in the early stages of the half as the Eagles' dominance continued. Seven minutes into the half it was game over as Moritz wrong-footed Ikeme from another free-kick for his second and Palace's third.
The Brazilian midfielder had shown glimpses of Premier League quality in his play and looked to complete his hat-trick with a piece of sublime skill, only to mistime his bicycle kick and see Parr's cross fly past his outstretched leg.
Sylvan Ebanks-Blake had been the visitors' biggest threat all game and he showed his class in front of goal to give Wolves some hope with 15 minutes to go. Jamie O'Hara's in-swinging free-kick should've been dealt with better by the Palace defence and Ebanks-Blake chested down and smashed home on the turn to give the travelling support something to cheer.
There was still time for Murray to rob Christophe Berra but the in-form forward over-hit his cross into the middle with substitute Jonny Williams waiting to seal the victory. It mattered not though as Palace comfortably saw out the final ten minutes to return to winning ways.
Crystal Palace: Speroni, Parr, Bolasie (O'Keefe 90), Dikgacoi, Jedinak, Zaha, Murray, Moxey, Ramage, Moritz (Williams 80), Gabbidon (Martin 46)
Subs Not Used: Price, Wright, Easter, Appiah
Bookings: Murray, Dikgacoi
Wolves: Ikeme, Stearman, Henry (c), Ebanks-Blake, Sako (Forde 60), Ward, Johnson, Berra, Davis (O'Hara 60), Doyle, Foley (Pennant 80)
Subs Not Used: De Vries, Jonsson, Batth, Margreitter