Alan Pardew made just one change from the team that beat Norwich, with Bobby Zamora returning in place of the suspended Carl Fletcher. Jimmy Walker kept his place in goal, while Mark Noble made his league debut for the Hammers.
The Hammers first real opening came when Zamora played in Rebrov and the striker forced a good save from Matt Murray.
Wolves took the lead on 29 minutes when Jody Craddock's free kick was flicked on by Carl Cort for Kenny Miller to hit home, but five minutes later the Hammers were level.
Rebrov picked out Zamora at the far post, and he beat Murray with a cool finish. Despite the ball flashing from end to end the teams went off with the scores locked at 1-1.
The Hammers were gifted a chance almost straight from the restart when a Mark Kennedy backpass fell to Sergei Rebrov who's shot was well blocked by Matt Murray.
Then, totally against the run of play, Wolves regained the lead. Seol's cross found Miller unmarked and he claimed his second of the game with a volley that Walker could not keep out.
But Alan Pardew's men would not lie down and less than two minutes later they had equalised. Marlon Harewood bulldozed his way through the Wolves defence and cut the ball back to leave Zamora with the simplest of tap-ins.
Rejuvenated, the Hammers pressed forward. A sweeping move involving Rebrov and Zamora crearted a chance for Luke Chadwick, but Murray spread himself to block at the midfielder's feet.
But just five minutes later Chadwick was involved with Malky Mackay in a piece of lacklustre defending that saw the ball given away to Paul Ince on the edge of the area. The infamous former Hammer despatched a thumping past walker to put Wolves 3-2 in front.
Suddenly it was going wrong for Alan Pardew's men. Just two minutes later they fell 4-2 behind when Seol crossed low for Carl Cort to stab the ball home.
Gavin Williams and Chris Cohen replaced the hard-working Mark Noble and Luke Chadwick late on, but there was no way back for the Hammers as they went down 4-2.