Sven-Goran Eriksson's side displayed grit, determination and a never-say-die spirit as they made it nine straight wins at Eastlands.
City had found themselves 2-1 down at half-time, the first time this season they had conceded two League goals at home.
But in the second period they scored three times as Bolton defender Lubomir Michalik put through his own goal and then Darius Vassell and Kelvin Etuhu found the net to complete a remarkable comeback.
Bolton had earlier taken an interval lead through goals from El Hadji Diouf and Kevin Nolan and they looked set to record their first away win of the season to ease their relegation worries.
City made a perfect start, taking a seventh-minute lead through recalled striker Rolando Bianchi.
Vassell seized on an error from Ricardo Gardner and, with the help of Michael Johnson, set up Bianchi, who slotted home his fourth goal of the season.
After a nervous opening, Bolton came alive and City old boy Nicolas Anelka struck the upright. It was no surprise when the visitors equalised just after the half-hour mark.
A delightful passing move ended with Kevin Davies crossing from the right for Diouf to score his first League goal of the season.
There was another shock in store for City when they fell behind five minutes before the break.
Gardner dispossessed Vedran Corluka and cut the ball back for Nolan to shoot low past keeper Andreas Isaksson for his third goal of the season.
Eriksson threw on teenager Etuhu at the break and it proved an inspired substitution, as within three minutes of coming on, he helped set up City's second goal when Dietmar Hamann's shot was headed past his own keeper by defender Michalik.
City were indebted to Isaksson for keeping them on level terms as he pulled off an instinctive save to keep out a point-blank shot from Anelka. Moments later City almost snatched the lead when Johnson's shot struck the upright with Jussi Jaaskelainen beaten.
City completed a remarkable recovery when Vassell squeezed home a shot past Gardner and Jaaskelainen in the 77th minute, following a break by Martin Petrov on the left.
There was icing on the cake for the home fans with an stoppage time fourth goal from Etuhu after he had been set up following a breakaway by man-of-the-match Vassell.