Rotherham had built a 3-1 lead shortly after half-time thanks to a starring role from on-loan striker Nouha Dicko.
The 21-year-old Frenchman scored twice, either side of a wonderful header from Kieran Agard, to take his goal tally to six in five starts since joining on loan from Wigan Athletic.
But Wolves - who were in the Premier League two years ago - were given a lifeline when Craig Morgan was adjudged to have handled a free-kick into the penalty area by referee Michael Oliver.
Bakary Sako blasted home the spot-kick and within five minutes James Henry had raced through to level matters.
This pulsating game sees Rotherham remain in the League One play-off places with Wolves nine points ahead of them in the race for the Championship.
The Millers fell behind on 10 minutes when Danny Batth headed home James Henry’s central free-kick.
But within 60 seconds of a breathless opening, Steve Evans’ side drew level when Dicko converted Ben Pringle’s cross at the front post.
Agard’s accurate looping header found the top corner from Pringle’s left-wing cross to give the Millers the lead eight minutes before the break.
And it was just rewards for the hosts, who had taken the game to their vaunted opponents after going behind.
Dicko and Harris Vuckic could have scored in between times while Mark Bradley blazed over with only Carl Ikeme to beat after Agard and Dicko had combined in a free-flowing counter-attack.
When Dicko scored his second, chesting home Pringle’s cross from close range after setting up the move himself, Rotherham were well on top and on course for a famous win.
Then came that contentious penalty decision, shortly before the hour, which Sako gratefully accepted.
And within five minutes Wolves were level, breaking quickly after a Rotherham free-kick, with David Edwards’s reverse pass releasing Henry who raced through and beat Adam Collin.
Both sides had chances to win it but a point apiece was a fair reflection.