A Grant Holt hat-trick gave the derby honours to Norwich, with Blues playing two thirds of the game with 10 men after Damien Delaney was sent-off.
Holt struck twice in the first-half, either side of Delaney's leveller before the Town defender was dismissed for pulling back the Norwich matchwinner.
Holt completed his hat-trick 12 minutes from time and substitute Wes Hoolahan made it four soon after.
Marton Fulop returned in goal for Town with Gianni Zuiverloon making his debut for Blues after joining on loan from West Brom. Luciano Civelli was named among the substitutes as he returned to first-team duty for the first time in 20 months.
Fulop was immediately in the action in what was a pulsating opening half, the Hungary international quickly off his line to smother the danger.
John Ruddy kept out Grant Leadbitter's 25 yarder before Holt and Leadbitter received yellow cards following a skirmish after the Canaries frontman had fouled Jack Colback.
Zuiverloon's timely interception prevented Andrew Surman putting Norwich ahead but on 13 minutes, the Canaries did find the target. Holt robbed Darren O'Dea and beat Fulop comfortably in a one on one.
Town responded, Tamas Priskin showing great skill to beat his marker, Ruddy forcing his cross away from danger.
Jason Scotland had a shot blocked, Priskin then denied by Leon Barnett as Blues looked lively on the attack. The impressive Lansbury, on loan from Arsenal, fired over at the other end, Fulop then keeping out Andrew Crofts' header.
Town were level on 28 minutes, Priskin heading on Leadbitter's free-kick and Delaney forced the ball over the line from three yards.
Blues pushed the Canaries back and first David Norris, then Priskin were denied before Norwich struck again, Holt beating the offside trap to get on the end of a superb Henri Lansbury pass and burying his effort from the edge of the box.
Two minutes later Roy Keane's side were left with a mountain to climb when Delaney lost control of the ball to Holt and pulled him back, referee Keith Hill immediately reaching for his red card.
Holt almost grabbed a third after another creative pass from Lansbury, Surman then forcing Fulop into a full stretch save.
Colin Healy replaced Scotland, Lansbury picking up a yellow card for the home side as the half came to an end with Norwich a goal up and man up.
David Fox tested Fulop inside the first few minutes of the second-half, the Town 'keeper then holding firm from Crofts' header.
Norris was shown a yellow card after bringing down Lansbury, Norwich then making their first change with Surman making way for Hoolahan just past the hour.
Fulop denied Chris Martin a third goal for Paul Lambert's side from point blank range, Leadbitter then firing wide from 25 yards.
Rory Fallon replaced Zuiverloon for the last 20 minutes, the New Zealand international arriving on loan from Plymouth on Thursday.
Holt wrapped up the points with his hat-trick goal 15 minutes from time, the Canaries' skipper sidefooting in from eight yards and it was four on 78 minutes, Hoolahan left free to lift the ball over Fulop after gliding into the Town box. Lansbury made way for Korey Smith, while Troy Brown replaced Priskin for the last 10 minutes.
Carrow Road rose to salute Holt as he made way for Simeon Jackson , the Canada international going down under Carlos Edwards' challenge but referee Hill booking him for diving rather than giving a penalty.
Jack Colback picked up a booking in the final minutes as Town went down to a fourth successive defeat.
Norwich: Ruddy, R.Martin, Barnett, Ward, Lappin, Lansbury (Smith 81), Fox, Crofts, Surman (Hoolahan 64), Holt (Jackson 85), C.Martin. Subs not used: Rudd, Nelson, Johnson, McNamee. Booked: Holt, Lansbury.
Town: Fulop, Zuiverloon (Fallon 70), Smith, Delaney, O'Dea, Edwards, Norris, Leadbitter, Colback, Priskin (Brown 81), Scotland (Healy 43). Subs not used: Murphy, O'Connor, Livermore, Civelli. Sent-off: Delaney. Booked: Leadbitter, Norris, Colback.
Att: 26, 532