It was confirmed that Iwelumo could leave Charlton as part of cost-cutting measures and he eventually signed for fellow Championship side Wolverhampton Wanderers in July 2008 on a two-year deal. Iwelumo scored a hat-trick for Wolves against Preston North End in a 3–1 win, taking his goal tally to eight for the season, where he was also sent off for an apparent head-butt on defender Sean St Ledger. Wolves made an appeal against this, which was turned down, despite St Ledger stating that the clash of heads was accidental and Iwelumo served a three-match ban.