Earlier, Dean Keates had equalised for the Saddlers when the tenacious midfielder grabbed his tenth goal of the season to put the promotion challengers back in the hunt.
It was a hard-earned win as Accrington posed numerous problems with goals from Paul Mullen and Phil Edwards putting them in the driving seat before Keates equalised with his vital 75th minute penalty.
Surprisingly Walsall struggled to make an impact in the first half when Accrington were often the more direct and positive in their general play.
Following back-to-back home wins, Accrington were keen to improve their lowly position and their eagerness exposed flaws in Walsall's defence.
Shaun Whalley was a major threat with his speed and skill which was allowed to flourish by the space given to him down the left flank.
Walsall struggled to flow and it was therefore a surprise when they took a 21st minute lead following a swiftly executed move involving Butler and Kevin Harper which ended with the former Derby player notching his third goal for the Saddlers.
Walsall embarrassingly allowed Accrington to get back into the game when Mullin grabbed his 14th goal of the season in the 25th minute.
There was a bad mix-up on the half-way line and Andy Proctor gained possession to send Mullin racing clear to slot his shot past the indecisive Clayton Ince.
David Martin was in top form to keep out a free-kick from Kevin Cooper as the game struggled to come alive.
Walsall were far from impressive and Trevor Benjamin eventually made way for Hector Sam.
Fortunately, Anthony Gerrard and Chris Westwood eventually shut out the threat of Mullen and Andy Mangan, but there was always the threat of Whalley lurking in the wing as a potential match winner.
Whalley again stamped his mark when he provide the inswinging cross from the left for Robbie Williams to power home his header at the far post.
But in the 74th minute Keates converted his third successive penalty after Butler had been brought down by Edwards, who earned a yellow card for his tackle.
And then Butler settled the game six minutes from time when he turned in a Craig Pead shot.