The video, shot by Kyle Hughes, shows smoke rising into the city sky from the Billy Wright stand after the blaze started in the early hours of Sunday morning.
The fire broke out just before 2am and led to around 20 firefighters from across the city being sent to the Wolves ground. It is thought to have been started accidentally by an electrical appliance.
Nobody was in the Sir Jack Hayward Suite when the fire broke out and fire crews managed to contain the flames and damage to one room.
Among those watching the smoke rise from the stadium was Mr Hughes, who witnessed the fire during his family's first night in their new home 500 yards from Molineux.
The 24-year-old explained: "I was up with my one-year-old son, he was having a coughing fit at around 1.30am. Around 10 or 20 minutes later I heard loud alarms.
"We live in a high-rise flat and I could see smoke rising above the Stan Cullis stand, I tried to capture it on video and it was just getting worse and worse. It went over the Billy Wright stand and just started to spread out.
"When we came out onto the balcony you could hear the loud alarms, I'm sure you could hear it for miles around. It was quite worrying because my first thought was one of the lights on the pitch had caught fire, but looking now they've said it was an appliance.
"At 2.05am I called 999 because I didn't immediately see if there were any fire engines on the site, they asked me to send over some live footage - but they were already on the scene within minutes, so that was really good.
"It was quite emotional and worrying seeing it get worse and worse like that. We were concerned because we thought there might have been people inside."
Mr Hughes, who has been a season ticket holder in The Sir Jack Hayward Stand for around eight years, filmed the fire from his high-rise flat in Birch Court, Boscobel Crescent, behind Asda.
He added: "I was thinking 'my goodness', first night in here, my son is awake and all I can hear is loud sirens going off - and then I find my football club stadium is on fire."
Waterloo Road was closed while the blaze was dealt with and fire crews left the scene at 6.45am before returning at 9am to check the area.
Wolves have since praised fire crews for preventing the flames from spreading further and said that all hospitality season ticket holders likely to be affected by the damage will be contacted in the coming days.