Paderborn's Laurin Curda scored in extra-time to seal a 2-1 home win in the second relegation playoff leg, relegating 2009 Bundesliga champions Wolfsburg 2-1 on aggregate.
The narrow win returns Paderborn to the Bundesliga after six seasons, while ending Wolfsburg's 29-year run in the top flight.
Wolfsburg, who played all but 14 minutes with 10 men, became just the second top-flight team in the past 14 seasons to be relegated in the two-legged playoff.
Dzenan Pejcinovic gave Wolfsburg the lead early, but two yellow cards inside three minutes to Joakim Maele reduced the Wolves to 10 men.
Buoyed by their one-man advantage, Paderborn laid siege to the Wolfsburg goal and Filip Bilbija levelled things up just before the break with a far post header.
The Volkswagen-owned Wolves, who reportedly have the fifth most expensive side in the Bundesliga, had hoped to challenge for a European spot this season but will now play in the Bundesliga 2 for the first time since 1997.
Curda broke through in the 99th minute, putting his side on course for victory.