Goal specialist Wolves went in front on 19 minutes through Ki-Hyeon Seol, but Andy Johnson levelled before the break.
Although Palace had the possession, it was Glenn Hoddle's outfit that went ahead on 19 minutes from their first serious attack.
Seol, 20 yards out and just inside the corner of their penalty area, was allowed to place his shot low through a ruck of players before it rolled past Julian Speroni and into the corner of the net.
But the Argentinian keeper made a magnificent save just a few minutes later as he incredibly bent backwards to tip Kenny Miller's 25-yarder over the bar.
However, the Eagles kept their heads as they upped the tempo and deservedly levelled a minute before the interval.
Dougie Freedman slipped a neat pass to Tom Soares located on the left side. The young Palace midfielder quickly spotted Johnson in space around the penalty spot and the Palace hitman turned with a low shot past Wolves keeper Stefan Postma.
The Eagles had their tails up at the start of the second half, but it was short-lived as Wolves had other ideas and enjoyed their best spell.
For a good 15 minutes they had the home side desperately defending and the Eagles were forced to concede five corners. Skipper Mark Kennedy rattled the crossbar and Vio Ganea followed up by blasting wide when it was easier to score.
Tom Huddlestone also shot wide as Wolves looked the more attacking outfit, but Palace survived and suddenly the game swung the other way.
Michael Hughes and Ben Watson bossed the midfield and the latter was unlucky with a 25-yard shot which was deflected by Rob Edwards and screamed over the crossbar.
Palace then had claims for a penalty turned down. Johnson outpaced Gabor Gyepes and the Wolves defender appeared to hold Johnson to the ground, but referee Mr Thorpe took a good look and said no.
That brought a sigh of a relief for Wolves who eventually held out for a yet another draw.