Town paid the price for missing first-half chances as goals from Marcus Tudgay and Madjid Bougherra gave in form Wednesday the points.
Alan Lee and Matt Richards missed gilt-edged chances as Blues dominated the first 45 minutes despite being a goal down, Tudgay scoring from close range on 11 minutes.
Blues continued to carve out openings after the break but another costly error from a set-piece saw Bougherra thunder a header past Shane Supple from six yards.
Fabian Wilnis returned to the side after suspension, Richard Naylor making way. Gary Roberts was handed his full home debut for Blues, Danny Haynes making his first start of the campaign.
Sheffield started brightly and Tudgay tested Shane Supple on five minutes with a left foot strike that was held by the Town 'keeper low down.
The pace of Wade Small on the Owls' right provided an early problem for Blues and Dan Harding did superbly to deny the flyer a run at goal.
Chris Brunt then flashed a corner across goal before the visitors took the lead on 11 minutes, Sheffield breaking at pace from a Town corner and Small crossing for Tudgay to score from close range.
Lee was denied by John Halls as Town looked for an immediate response, then good work by Haynes saw the teenager create space on the right and send a stinging cross beyond Sylvain Legwinski at the far post.
A clearly upset and injured Haynes limped off seconds later, replaced by Jon Macken, back after a hamstring injury.
Wednesday had a chance to extend their lead on 25 minutes, Kenny Lunt's clever free-kick missed at the near post by Tudgay but the ball fell to Bougherra who fired well over.
Hills became the first booking of the game just before the half hour for a foul on Lee, with Town then opening up Sheffield down the visitors' right flank, Roberts' cross evading Lee and Macken at the far post.
Small was cautioned for a late challenge on Harding and seconds later Town should have been level, Legwinski releasing Richards down the right and from his cross, Lee dragged his shot wide from six yards.
Roberts blazed a shot well over from the angle, then Lee Bullen deflected Lee's cross over the bar as Town took a hold on the game.
Lee's strength then set up another clear cut chance for Town, the Republic of Ireland international shrugging off Bougherra and feeding Roberts down the left and his cross fell to Richards at the far post but he blazed the ball over from six yards.
Macken blasted the ball into the sidenetting as Jim Magilton's side opened up the second-half as they finished the first.
Lee picked up his fourth booking of the season for a challenge on Bullen before Town were forced into a second change, Noble, on his last appearance before returning on loan to West Ham, limping off to be replaced by Darren Currie.
The midfielder immediately created an opening with a cross to Jason De Vos, who headed at Mark Crossley, the 'keeper snatching the ball at the second attempt.
Tudgay's ambitious overhead kick was held comfortably by Supple, then Deon Burton was denied by De Vos, while at the other end Lee and Macken were both crowded out as they tried to force the ball home.
Burton O'Brien replaced Brunt on 72 minutes but it was Blues who continued to carve out openings, Roberts' teasing cross just glanced wide by Lee.
Wednesday made a second change with 10 minutes left, Glenn Whelan replacing Small as the Owls prepared to take a corner and from the flag-kick, Bougherra headed in at the far post to extend his side's lead after losing Wilnis.
Supple did brilliantly to keep out Tudgay's close range shot then Bullen headed against his own post from Roberts' cross, the ball deflecting into a relieved Crossley's path.
Currie picked up a late booking as Town's frustration showed, with Steve MacLean replacing Burton as Wednesday wound down the clock.
Lee and Richards both went close in the four minutes of added on time but Wednesday held firm to make it 13 points from the last 15 and give Brian Laws a winning start to his management career at Hillsborough.
Town: Supple, Wilnis, De Vos, Bruce, Harding (Naylor 82), Roberts, Legwinski, Noble (Currie 64), Richards, Lee, Haynes (Macken 23). Subs not used: Drobny, Peters. Booked: Lee, Currie.


















