Alex Iwobi returned to Arsenal’s starting line-up for the first time in a month for the Gunners who missed the chance to go fourth in the Premier League after losing 3-1 to Wolves at Molineux.
The Nigerian international was replaced by Eddie Nketiah in the 71st minute of the encounter.
The game was his 32nd appearance this season.
Ruben Neves put the hosts ahead with a direct free-kick from 25 yards before Matt Doherty headed in a second.
Diogo Jota added a third just before half-time after the Gunners gave the ball away and he ran at the away defence before firing a shot under goalkeeper Bernd Leno.
Arsenal defender Sokratis headed in from Granit Xhaka’s corner in the 80th minute but it was not enough for the Gunners.
The win takes Wolves up from 10th to seventh, while Arsenal remain fifth, one point adrift of fourth-placed Chelsea and four behind north London rivals Tottenham.
With the win Wolves have picked up 16 points in their matches against the current top six this season, a record that includes wins over Tottenham, Chelsea, Manchester United and now Arsenal.
Wolves are also aiming to become the first newly promoted side to finish in the top eight since Reading finished eighth in 2005-06, while no promoted team has finished higher than that since Ipswich Town were fifth in 2000-01.
At Old Trafford, Manchester City beat city rivals Manchester United 2-0 to return to the top of the Premier League.
Bernardo Silva’s low drive went inside United keeper David de Gea’s near post after 54 minutes and the keeper was at fault again when Leroy Sane’s drive went straight through him.