A dire showing from Palace failed to produce a shot on target as they crashed out of the competition at the first hurdle for the second season running.
After a slow start to the match, Wolves should have taken the lead after 12 minutes but Fabio Silva somehow managed to head the ball over the crossbar from eight yards out following some good work down the left by Pedro Neto.
Wolves had seen a lot of the ball and made their dominance count after 35 minutes through Traore’s superb strike.
The 24-year-old skipped past Eze out wide on the right with a lovely piece of skill before shifting the ball onto his left foot and powering a shot beyond Butland from the edge of the penalty area.
The Palace goalkeeper got a hand to the ball but there was too much power on the shot for him to keep it out.
Palace huffed and puffed but did not look threatening until Roy Hodgson introduced Zaha for the final 20 minutes.
The visitors immediately looked more dynamic as Zaha jinked his way to the byline and teed up Batshuayi, but Conor Coady made a last-ditch block to avert the danger.
Wolves went close on the counter-attack with 10 minutes remaining as Neto sent a shot narrowly wide after Ruben Neves’ break from defence.
Palace applied some late pressure as they looked for the equaliser but, as was the case all night, they lacked ideas and cohesion in the final third of the pitch.