Wolves earned a long-awaited first Premier League win of the season and left Watford still searching for theirs.
Matt Doherty's strike and a Daryl Janmaat own goal ensured it was Nuno Espirito Santo's side who broke their duck with a 2-0 success and climbed out of the bottom three, while the Hornets remain at the foot of the table.
The action was frenetic and end-to-end in the opening stages as both tried to begin on the front foot.
Danny Welbeck, making his first Premier League start for Watford, threatened for the visitors before Raul Jimenez drove a shot into the side-netting for Wolves and flashed another effort narrowly wide.
Watford were wasteful in the final third and looked fragile at the other end, so it was little surprise when the hosts went ahead after 18 minutes.
Good link up play involving Joao Moutinho, Jonny and then Pedro Neto – making his first Premier League start for the club – saw the debutant find Doherty's run with a brilliant low cross and the full-back tapped the ball home.
Wolves goalkeeper Rui Patricio was relieved he did not present Watford with an equalising goal early in the second half. Half-time substitute Roberto Pereyra crossed the ball for Jose Holebas, whose header was saved and then fumbled by the Portugal international.
Tom Cleverley then got a touch on the loose ball but it dribbled inches wide of the post to spare Patricio's blushes.
Watford were having plenty of possession without really troubling Wolves, who doubled their lead just after the hour mark. Doherty was involved again, he crossed the ball into the penalty area where it was flicked on by Morgan Gibbs-White and went into the net off the unlucky Daryl Janmaat.
The Hornets came from two goals down to earn a draw against Arsenal this month in Quique Sanchez Flores' first game back as manager and had Patricio not produced a fine save to deny Welbeck after 72 minutes, then they might have thought a repeat was on the cards.
Jonny was at full stretch to try to connect with a teasing low cross from Adama Traore as Wolves looked for more goals.
Abdoulaye Doucoure worked Patricio from long range late on but Wolves saw out the match for a first victory while Watford have now lost five of their seven Premier League games.