Icelandic striker Bjorn Sigurdarson opened the scoring for Wolves in the opening minutes but Billy Sharp hit back for Nottingham Forest to take the game into half-time on level terms.
Then Adlene Guedioura stepped up to sink his former club and leave the Reds outside the play-off places on goal difference only.
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"We are a team who can score but we can also concede so we want to keep the one and negate the other," said Sean O'Driscoll after the game.
"We are a work in progress.
"First and foremost in this division you have to be hard to beat. That is the crux of everything."