The Reds entered the league fixture top of the Northern premier Division, six points clear of second place Wolverhampton Wanderers.
Head Coach Andy Cook made one change to the side that ran out 4-2 winners against Liverpool Feds last weekend, with Laura-Jayne O’Neill returning to the starting eleven for the first time since her long-term injury; replacing Yasmin Mosby.
Five minutes in and the hosts were the first to find an opening at goal with two shots cleared off the line back-to-back after a goal line scramble in the Forest box.
In the 7th minute Forest had a great chance of their own when Charlotte Greengrass fired a brilliant effort onto the crossbar.
Greengrass worked another opportunity at goal with an excellent shot finding the bottom corner from outside the box as The Reds’ number 22 opened the scoring in the 8th minute.
The hosts immediately equalised just a minute through Destiney Toussaint.
Both sides continued to push for the lead with Wolves having a chance well saved by Reds' goalkeeper Emily Batty; Hayley James found Charlotte Steggles at the far post with a deep cross, the defender headed wide.
28 minutes in Sophie Domingo’s low cross found Greengrass, who fired her shot over the opposition goal.
In the 35th minute O’Neill had her shot cleared off the line following a corner into the box before Domingo worked an opportunity two minutes later which went over the crossbar.
Four minutes into additional time in the first half, the hosts took the lead through striker Jade Cross to give Wolves the lead heading into the break.
Half time: Wolverhampton Wanderers 2-1 Nottingham Forest
After a quiet opening 15 minutes of the second half, Andy Cook looked to his bench and introduced Gianna Mitchell, Yasmin Mosby and MacKenzie Smith into the action with Sophie Domingo, Mai Moncaster and Olivia Cook being replaced.
In the 64th minute Wolves doubled their advantage when Cross scored her second goal of the afternoon.
Mosby struck an effort go over the opposition bar in the 70th minute after some good work to create space to get a strike away.
It was Mosby again whose shot went just over the Wolves’ goal late on in the 90th minute, as The Reds would fall to their first league defeat of 2023.
Full time: Wolverhampton Wanderers 3-1 Nottingham Forest
Forest Women lost in the Northern Premier Division for just the second time this season, although The Reds remain top of the league with a three-point lead over second place Wolves.
Forest now prepare for a run of three consecutive home games at Halbrooke Stadium against Boldmere St. Michaels, Huddersfield Town and their League Cup semi final against Portsmouth.