Reigning world champions Littler emerged victorious in a tense deciding leg, with both players demonstrating high-quality darts.
Wright's impressive checkouts were matched by Littler's immense composure under pressure, both registering key breaks before Littler teased the crowd when opting for a lay up shot rather than big fish checkout prior to sealing the win.
Elsewhere, world number one Luke Humphries faced a stern challenge from reigning women's world champion Beau Greaves, who had previously made history by becoming the first female player to win three consecutive matches in the tournament.
Greaves, showcasing exceptional skill, surprisingly surged ahead, but Humphries rallied, securing a 10-7 victory with a strong finish. Humphries praised Greaves' talent after the match, suggesting she has a bright future in top-tier darts.
Michael van Gerwen narrowly avoided an upset against Dirk van Duijvenbode, ultimately winning 10-8. Dimitri Van den Bergh began his title defence with a win over Raymond van Barneveld.
Former champions Nathan Aspinall, Danny Noppert, and James Wade also advanced, while Gary Anderson and Andrew Gilding were eliminated.
Gerwyn Price suffered a heartbreaking defeat to Connor Scutt, despite a remarkable comeback. Chris Dobey overcame a deficit to defeat Premier League rival Stephen Bunting, and Rob Cross secured a comfortable victory.
Bully Boy Michael Smith found redemption for a tough run of form with a win over Kevin Doets, and Dave Chisnall edged out Ricky Evans in a thrilling contest.
Other notable winners included Damon Heta, who dominated Kim Huybrechts, and Jurjen van der Velde, the sole remaining player from the first round.
The draw for the fifth round revealed intriguing matchups, including Van den Bergh against Dobey, Humphries against Searle, Littler against Wattimena, and Van Gerwen against Owen. The tournament continues with the fifth and sixth rounds on Saturday.