Enzo Maresca’s team were just two points behind leaders Liverpool in mid-December, raising hopes of an unlikely title challenge before losing their way.
Now they are back on track to qualify for next season’s Champions League after second-half goals from Marc Cucurella and Noni Madueke spared Sanchez’s blushes.
The Spanish goalkeeper had dropped the ball moments before half-time, allowing Matt Doherty to cancel out Tosin Adarabioyo’s opener.
Maresca said Chelsea had dominated the first 40 minutes before problems that have haunted them in recent weeks returned.
“We lost a little bit of confidence, we conceded a goal and we started to struggle a little bit and then the second half I think we started quite well and then after the second and third goals the game was in control,” he told Sky Sports.
He added: “In the past five games we didn’t win but I said many times that the performance was there. We created many chances, we didn’t score and tonight finally we scored three goals.”
Chelsea’s top-scorer Cole Palmer, a doubt before the game, was fit to start as Maresca made five changes from last week’s draw against Bournemouth including bringing in centre-back Trevoh Chalobah, recalled from his loan spell at Crystal Palace.
The home side dominated possession in the early stages and Palmer had a couple of early efforts, curling one wide and forcing Jose Sa into a diving save.
The home side were rewarded for their dominance midway through the first half when Adarabioyo fired home for his first Premier League goal for the club.
The defender controlled the ball well after it was deflected into his path from Reece James’s shot from the edge of the box.
A number of Chelsea players were in offside positions in a crowded penalty area and the flag was raised but the on-field decision was overturned after a VAR check.
sanchez blunder
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Wolves, anaemic in attack for most of the first half, came back into the game as half-time approached, scoring with their first shot on target thanks to Sanchez’s error.
The visitors won a corner and the goalkeeper dropped the inswinging delivery from Matheus Cunha under intense pressure when he could have punched clear, with Doherty poking home.
The home side started the second half brightly and were back in front on the hour mark when Cucurella hooked home on the stretch after Madueke’s cross was flicked on by Kiernan Dewsbury-Hall.
Five minutes later Chelsea had a two-goal cushion when Madueke scored his fourth goal of the season against Wolves, heading home Chalobah’s goal-bound effort.
Sanchez palmed a Cunha shot behind with 10 minutes to go but Chelsea were largely comfortable despite the occasional minor scare and leapfrogged Newcastle and Manchester City, whom they face next.
Former Leicester boss Maresca, in his first season in charge at Stamford Bridge, stubbornly insisted his team were not in the title race even when they were flying high after five straight wins from late November.
Starting with a 0-0 draw at Everton just before Christmas, they took just three points from five games before returning to winning ways on Monday.
Wolves, who have conceded a league-high 51 goals, are outside the relegation zone on goal difference alone after three straight defeats following a bright start for new manager Vitor Pereira.
