Dean Keates admitted his team's 3-2 home defeat by AFC Wimbledon was a “massive blow” to the Saddlers' survival hopes.
The Saddlers led 2-0 at half-time through goals from Jack Fitzwater and Julien Ngoy.
Efforts from Joe Pigott and Lyle Taylor drew the Dons level before Dean Parrett crashed home a 96th-minute penalty to complete a stirring fightback.
The result leaves the Saddlers in 19th place, three points above the drop zone.
“It’s a massive blow,” Keates admitted.
“At half-time, we were comfortable.
“In the first half, I thought we played really well. The first 15 minutes was the best we’ve played.
“We got in at half-time and told them our concentration levels had to be bang at it as soon we go back out.
“We had to come out second half and be brave. They changed the formation and we didn’t deal with it.
“We didn’t get the ball down and make a pass. It got edgy and as soon as the first goal went in, we were defending for our lives.
“There were periods when we got put under pressure and we didn’t make enough passes to get hold of the ball and get us up the pitch.”