Wolves had lost their previous five away games without scoring a goal, while Birmingham were denied a sixth successive win as they leaked their first goal in that spell.
This Midlands derby, however, ended in controversy as Birmingham felt they suffered a bad decision which led to Wolves' 89th-minute equaliser from Craddock.
Seconds earlier Seb Larsson had been knocked to the ground by Gary Breen. As Larsson lay prostrate on the ground Wolves raced away to win a corner on their left.
Substitute Rohan Ricketts produced the high corner to the far post where the unmarked Craddock was on hand to head home his second goal in three games to the dismay of the Birmingham fans.
Craddock, an accomplished off-the-field artist, could not have painted a better finish to this competitive derby match after Birmingham had been continually foiled by the outstanding Wolves goalkeeper, Matt Murray.
It was a huge disappointment for Birmingham boss, Steve Bruce, who only a month ago had to endure his critics shouting for his head.
They have since been silenced as Birmingham have emerged as promotion favourites which they should have enhanced against Wolves but for the brilliance of Murray.
Only some excellent saves from Murray, who is destined to move into the Premiership on this form, prevented Birmingham from recording a runaway win.
The well-built goalkeeper, who is currently being tipped as England's next goalkeeper, continually distinguished himself with a string of quite brilliant saves to keep Wolves in the match.
Wolves hardly performed like a team which had lost its previous five away games. They hit Birmingham with some powerful early attacks with Lewis Gobern wasting an early opportunity to break their recent barren goal spell.
As a result of Wolves' determination to assert themselves Birmingham had to dig in grimly and make isolated challenges on the break.
They were certainly adept using this style as highlighted when the richly talented Nicklas Bendtner slipped a ground-hugging angled pass into the path of Gary McSheffrey who closed in rapidly to fire in a shot which the confident Murray parried for a corner.
That incident set the tone for a closely contested Midlands derby, as was highlighted when McSheffrey broke through again to terrorise the Wolves
defence.
McSheffrey appeared to be tripped by Karl Henry but referee, Mark Halsey, in close attention, declined Birmingham's penalty appeal.
The tenacity of McSheffrey and the danger of Bendtner continued to trouble Wolves with Murray proving the major stumbling block as he demonstrated in saving an effort from Cameron Jerome.
But even the international skill of Murray could not deny Birmingham and McSheffrey in particular. Bendtner created the opening with a headed pass and the former Coventry City favourite took careful aim before firing home a 29th-minute opening goal with his trusty left foot.
Karl Henry went close to a first-half equaliser only for Maik Taylor to predictably finger-tip the ball away for a corner.
The outstanding Murray prevented Bendtner and Jerome scoring early in the second half and Wolves were encouraged to attack in depth with Seyi Olofinjana weakly heading into the waiting arms of Maik Taylor.
But it was not until the final five minutes that Wolves snatched a draw when, following the Breen-Larsson incident, Craddock popped up with his priceless goal.