The 23-year-old centre-half – who only joined the club in the summer of 2018 from non-league Maidenhead United – is now tied down until 2025.
“It feels great and it’s something that I’ve always wanted. When I first came to Wolves, I always felt there was a future here for me and I could do well here, and it’s been a great two years," said the 23-year-old.
“Everyone here, from the staff, to the players, to everyone involved in the club, they’ve all been brilliant with me and I’ve always felt very welcomed here.
"I’m very proud and have to thank everyone who has helped me along the way for the support they’ve given me.
“To sign another five years is a fantastic feeling, and I’m just happy to be part of this club for longer.”
Kilman's bumper deal replaces his previous one which was due to expire in the summer of 2022 and comes after impressive performances under Nuno Espirito Santo in recent weeks.
He played 90 minutes against Fulham and Leeds, helping Wolves to 1-0 wins in both games with calm displays.
“Having a five-year commitment from the club is great. Along with my family, they have always been very supportive.
“I’ve always felt the manager and the staff have had a lot of belief in me; the little things in training, always doing that extra bit of work with me after sessions, and that belief has given me more confidence in myself.
“I knew that if I listened, worked hard, and kept progressing then I would improve. I always wanted to stay at Wolves, that’s been the goal.
“To be signed for such a big club as Wolves means a lot to me, and to my family as well, and I’m very proud that I can call myself a player for this club.”
Kilman had previously had his contract quietly extended until 2022 after featuring several times for Wolves in the Europa League last season.
He made his league bow for Wolves towards the end of the 18/19 season – in which he also helped the club’s under-23s to the Premier League 2 Division Two crown – as he came on as a last-minute substitute against Fulham at Molineux.
He made his full senior debut against Pyunik in Europa qualifying in August 2019 and, in total, has made 14 senior appearances in gold and black.
“It’s been quite the journey. Becoming a first-team player definitely came as a surprise, because when I signed from Maidenhead, I never expected that I would be playing for a Premier League, first of all, let alone be part of the first-team squad.
“I only signed for the under-23s and I didn’t have the expectation that I would get to the first-team. I obviously had a bit of belief in myself and my own ability – every player does, but I never thought it would happen within the first six months of joining."
Nuno has long been a huge admirer of Kilman and praised his temperament and ability after a man of the match outing at Elland Road.
"When your chance comes you have to respond and Max did that. Two seasons ago Max was a back-up and now he is ready to compete," said Nuno.
"His professional career was very premature. I think he has something. He works very hard, he knows what he has to improve and he’s become stronger as the time has gone by.”