The Wolves came into the game with seven points from nine which had moved them clear of the bottom three.
But they fell behind after 11 minutes on Wednesday thanks to Juan Arango's fine volley and Tony Jantschke's close-range finish shortly before half-time gave them some breathing space.
The Wolves were second best throughout and Bas Dost's late effort against the outside of a post was as close as they came to pulling one back.
The hosts went in front in some style, Arango volleying the ball into the right corner from 22 yards.
At the other end Makoto Hasebe saw a header parried by Gladbach goalkeeper Marc-Andre ter Stegen and Diego sent a free-kick inches wide of the left post.
But the Foals were looking more threatening and - more importantly - taking their chances, and they doubled their lead just before the break.
A corner from Havard Nordtveit was headed on by Arango and Jantschke stabbed the ball home at the far post.
Gladbach started the second half strongly and visiting goalkeeper Diego Benaglio was forced to save from Patrick Herrmann, Nordtveit and Lukas Rupp in the opening five minutes.
Wolfsburg refused to throw in the towel, though, and pushed forward as the half wore on, looking for a way back into the match.
But Dost fired their best chance against the outside of a post as the Wolves' three-match unbeaten run came to an end.