Leicester have scored four Premier League goals in the opening 15 minutes of matches this season - more than any other team
Youri Tielemans put the Foxes ahead with a stunning 22-yard strike, which flew past Jose Sa and went in off the post.
Wolves had nine shots in the opening 17 minutes, but fell 2-0 behind when Harvey Barnes linked up with Kiernan Dewsbury-Hall and slotted past Sa.
Former Chelsea striker Diego Costa, still searching for his first goal since joining Wolves on a free transfer in September, had numerous chances but could not beat visiting keeper Danny Ward, who tipped one shot over and saved a header. Costa also saw other attempts blocked or deflected away.
Daniel Podence was another to be denied by a brilliant Ward stop, while Ruben Neves fired a free-kick just wide at the start of the second half.
By the time Leicester scored their third - James Maddison again pressing his claim for a place in England's World Cup squad with a lovely low strike from 18 yards out - Wolves had created, and missed, 20 opportunities.
That Maddison goal came from only Leicester's third attempt of the match and they scored with their fourth too, Jamie Vardy scoring from close range following Timothy Castagne's cross, as they finally won away from home in the league after five successive defeats.
"We are growing nicely, but there is a long way to go," said Foxes manager Brendan Rodgers following his side's third win in five games after home victories against Nottingham Forest and Leeds earlier this month.
"Collectively, we were very, very good. We carried a threat, and defensively we were excellent. Our pressing has been very good and all the goals were fantastic.
"Confidence will grow and we'll get better. The concentration is better, everybody is focused, pressing at the right time and forcing teams into mistakes. Then we know we have the quality in the final third."
The win takes Leicester up from 20th to 16th, while Wolves drop a place to 19th and are only above bottom side Nottingham Forest on goal difference.
During the second half the home fans at Molineux showed their anger towards technical director Scott Sellars, with chants of "We want Sellars out" and "Scott Sellars, get out of our club".
Another chant was "Sellars, make a sub", but interim head coach Steve Davis rejected suggestions that Sellars, a former Leeds, Newcastle, Blackburn and Bolton winger, was having a say on tactics during a game.
"Scott does his job upstairs and we do our job downstairs," said Davis. "I'm not on social media so that was the first time I heard something like that [from the fans].
"He is not involved in picking the team. We [Davis and coach James Collins] select how we play and we make the substitutions."
These are tough times for Wolves, who reached the Europa League quarter-finals in 2020, but sacked manager Bruno Lage earlier this month.
Their attempts to secure a replacement have not gone well. Former Spain manager Julen Lopetegui and ex-Watford manager Rob Edwards have been interviewed, while former boss Nuno Espirito Santo, who took them into Europe, was linked with a return. And on Thursday, QPR boss Michael Beale rejected them, preferring instead to stay with the Championship leaders.
Wolves chairman Jeff Shi then said lifelong Wolves fan Davis, in charge of coaching the club's under-18s before Lage was dismissed, would continue to be interim head coach "until 2023".
Davis' side made a bright start in his fourth game in charge, but once again they could not convert their chances and their total of five goals in 12 games is the lowest in the division.
Costa, Nunes, Hugo Bueno and Podence had shots saved or blocked and Joao Moutinho and Max Kilman narrowly missed the target on a frustrating day for the home fans.
"We're in a battle," added Davis. "It's early in the season and it has to change. We can't be saying this beyond the World Cup, we need to be getting points.
"It's frustrating. Losing 4-0 at home is hard. I'm very disappointed for the fans and I feel their pain too."
Leicester scored four excellent goals from five shots and only a late missed header from substitute Marc Albrighton meant they failed to end the match with a 100% conversion record.
Understandably, Rodgers was delighted with a much needed three points.
"When we played the ball forward, we looked good and could have scored more goals," he added.
"We broke forward really well. Our objective was to get over the line. It is a Midlands derby so a great day for the supporters."
-- Courtesy of BBC Sport