Gerard Deulofeu was the catalyst as Watford came from two goals down to beat Wolves 3-2 after extra time and book a first FA Cup final appearance since 1984 in a sensational semifinal at Wembley.
Strikes either side of half-time from Matt Doherty and Raul Jimenez – who followed becoming Wolves' record signing on Thursday with a stunning volley – put Nuno Espirito Santo's side on the path to a May 18 meeting with Manchester City.
Javi Gracia responded by sending Deulofeu on for Will Hughes and the Spanish winger scored an outrageous chip before Troy Deeney drilled home from the penalty spot in second-half stoppage time.
While Deulofeu's first was special, the one Watford fans will most treasure came when he showed absolute composure to slide home in the first half of extra time and end Wolves' hopes of a return to the FA Cup showpiece after 59 years.
Jonny Castro Otto and Joao Moutinho curled efforts over from 20 yards as Wolves started brightly and went ahead when an unmarked Doherty nodded Diogo Jota's cross home nine minutes before half-time.
Jimenez struck a fierce shot straight at Heurelho Gomes early in the second half but saved his best for the 62nd minute, controlling Doherty's cross on his chest before acrobatically converting with unstoppable power and celebrating with a Wolves-themed Mexican wrestling mask.
Watford substitute Deulofeu showed the kind of opportunistic finishing his team-mates had lacked when Romain Saiss' poor clearance landed at his feet and he curled exquisitely over John Ruddy 11 minutes from time, igniting the turnaround.
With a historic Wolves victory seconds away, Leander Dendoncker tripped Deeney in the box and the Watford captain smashed a thunderbolt of a spot-kick past Ruddy to force an additional 30 minutes.
Andre Gray's slide-rule pass put Deulofeu through against Ruddy and he guided a precise, low shot past the Wolves keeper and into the bottom-left corner in the 104th minute.
Substitute Ivan Cavaleiro looked sure to take the game to penalties when he rounded Gomes at the death, but he lost control of the ball and Wolves' final chance evaporated.
What does it mean? Gracia cements iconic status
Watford's fans unfurled a gigantic banner depicting the manager before kick-off, displaying the high regard in which he is held at Vicarage Road.
After his side showed incredible spirit and bravery to win at Wembley, an unlikely victory over City next month would render him every inch a Hornets legend.
Deulofeu writes his name into history
Deulofeu became only the seventh player to score a brace in an FA Cup semifinal and his arrival as a replacement for Hughes transformed Watford.
Dendoncker undone by Deeney
Going toe to toe with Deeney is never easy but Dendoncker's challenge on the Watford captain in the dying seconds was ill-advised at best and Wolves' grip on the game was lost as a result.
What's next?
Watford has over a week to recover before its Premier League clash with Arsenal at Vicarage Road, while Wolves will travel to relegation-threatened Southampton on Saturday.
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