Bakary Sako's 93rd-minute equaliser salvaged a 1-1 draw for ailing Wolves and put a dent Watford's promotion charge.
Manager Dean Saunders, the club's fourth boss in 12 months, is still waiting for his first victory in charge having overseen nine of their run of 13 winless matches, with Wanderers - in the npower Championship drop zone - still facing the very real prospect of successive relegations, as they experienced in the mid-1980's.
Yet Sako's well-taken injury-time equaliser drew welcome celebrations from a frustrated Wolves crowd, who will still believe in survival. The game's defining moment of brilliance looked to have come just before half-time as Watford playmaker Almen Abdi converted a delightful free-kick for his 10th goal of the season.
Elsewhere, Julian Speroni saved Conor Sammon's late penalty as Crystal Palace secured a first Championship away win since November with a 1-0 victory over Derby at Pride Park.
Yannick Bolasie clinically scored the game's only goal for the promotion hopefuls, who looked good value for the three points until captain Mile Jedinak fouled substitute Ben Davies in the penalty area with three minutes remaining.
However, Sammon's powerful spot-kick was brilliantly deflected onto the bar by the Argentinian shot-stopper to consign Nigel Clough's side to a first home defeat of 2013.