Ruben Neves scored a 95th-minute winner as Wolves came from 2-0 down to snatch an incredible victory in an extraordinary West Midlands derby.
Wolves looked down and out when John McGinn added to Danny Ings' opener to give Villa a two-goal cushion midway through the second half.
But in a dramatic final 10 minutes, Wolves scored three times to seal a third straight Premier League win.
Romain Saiss reduced the deficit from inside the six-yard area, then Conor Coady bundled in an 85th minute equaliser after Max Kilman had headed against the bar.
Neves struck in the fifth minute of stoppage time when his free-kick took a deflection on its way past Emiliano Martinez to complete an astonishing comeback.