Phillips, a 62nd minute substitute, pulled the game out of the fire after Birmingham had found themselves trailing to a 42nd minute strike from sharp-shooting Kevin Doyle.
Birmingham, unbeaten in their last nine games against Wolves, had to battle hard for their latest success and it was only the introduction of three substitutes by manager Alex McLeish that changed the course of the game.
Wolves, who remain in the bottom three, had appeared to be heading for their first win in six games but they reckoned without the prolific goalscoring of Phillips.
Despite only one defeat in 15 games, this was only Birmingham's second win in seven matches as they bounced back from last week's defeat at Chelsea.
Wolves, without a win in their previous five games, found themselves under immediate pressure from a free-flowing Birmingham side and were indebted to a goalline clearance by Michael Mancienne for keeping them in the match.
A Cameron Jerome header was on target before the former Chelsea player popped up to deflect the effort over the bar.
Only a desperate tackle by Ronald Zubar kept out Lee Bowyer following a defence-splitting pass.
After weathering this initial storm Wolves created a better impression, although they appeared to rely heavily upon the skill of Irishman Doyle.
Birmingham's goalkeeper, Joe Hart, who has taken plenty of plaudits in recent weeks, then got himself booked for a needless foul outside the penalty area on Doyle.
Zubar should have done much better with a mis-directed header from a Matthew Jarvis free kick, while Jerome produced a weak finish after racing clear of Wolves defence only to fire straight at Marcus Hahnemann.
Following their hesitant start, Wolves appeared to gain in confidence. A snap-shot by Kevin Foley proved inspirational and in the 42nd minute they took a shock lead.
A low cross from the left by Jarvis was deflected to the foot of the post by Roger Johnson.
Hart made the save but could only parry the ball back into the path of Doyle to instinctively prod his close-range shot into the net.
Taking the lead certainly lifted Wolves and forced Birmingham to chase the game in the second period.
But there was no real power down the middle as Christian Benitez, still seeking his first goal at St. Andrew's, was often shut out by Jody Craddock.
The lack of attacking pressure subsequently resulted in veteran Phillips taking over from Benitez in the 62nd minute, while five minutes later Craig Gardner was drafted in for his first home appearance since his £3million move from nearby Aston Villa.
Irishman Kevin Fahey also took over from Seb Larsson and the three changes certainly paid dividends for Birmingham.
All three were involved in the 79th minute equaliser. Fahey chipped a cross to the right where Gardner headed back into the middle and Phillips was on hand to guide his low shot into the net.
The goal inspired Birmingham and five minutes later skipper Stephen Carr advanced down the right and his cross was hooked home in familiar style by the inspirational Phillips.