Hwang Hee-Chan scored the winning goal as Wolves ended Manchester City’s winning streak in the English Premier League on Saturday.
The champions were handed their first defeat in the Premier League ahead of the crucial league matchup against last season runners-up Arsenal.
Julian Alvarez’s free-kick cancelled out Ruben Dias’ early own goal, but Pep Guardiola’s side were unable to find a way back from Hwang’s strike.
They were aiming to win their first seven Premier League games for the first time but instead were beaten by a combative and fired-up Wolves.
Defeat puts a fresh spin on next Sunday’s trip to Arsenal, with the Gunners now a point behind the leaders, after Wednesday’s Champions League game at RB Leipzig.
Erling Haaland went close to Matheus Nunes’ cross as, predictably, the visitors dominated early but found Wolves tough to break down.
Nunes was the obvious pantomime villain, having effectively gone on strike to force his eventual £53million deadline-day move to City from Wolves.
So there was even more delight from the home fans when Wolves stunned Guardiola’s men after 13 minutes.
Mateo Kovacic’s loose pass hit Phil Foden which allowed Pedro Neto to seize on the mistake and tear past Nathan Ake.
He powered his way down the right, avoiding Ake’s desperate lunge, to race into the area and Dias deflected his cross past Ederson from close range.