Town’s nemesis David Nugent struck twice in the space of six second-half minutes to give Leicester the points.
The Fox in the box smashed in a half-volley to cancel out David McGoldrick’s early strike and then finished off a counter attack to make it 13 goals in his 12 appearances against Blues.
Town made two changes to the side that beat Blackpool before the international break, Tommy Smith and Paul Anderson returning to the line-up at the expense of Carlos Edwards and Luke Hyam.
Blues got the perfect start on two minutes when McGoldrick let fly from the edge of the box and the ball squirmed under Kasper Schmeichel and into the net.
Leicester responded with Nugent dragging his shot wide but while the Foxes had the advantage in possession in the first 45 minutes Town had the better chances. Schmeichel saved well from McGoldrick after Paul Konchesky’s backpass had fallen short.
Paul Anderson then found himself free in the box but couldn’t convert as gaps appeared in the Leicester defence.
The visitors looked a threat going forward though and it needed a timely intervention from Christophe Berra to halt Jamie Vardy, Liam Moore then heading wide from a corner.
Lloyd Dyer fired across goal while at the other end Luke Chambers fizzed a shot over after Daryl Murphy’s cross.
Tyrone Mings, making his home debut, almost got in as Town looked for a second goal, with Murphy then blocked by Dean Hammond’s tackle 15 yards out.
Dean Gerken tipped over Andy King’s header but Town finished the half with a flurry of chances, Schmeichel fisting away from Ryan Tunnicliffe’s cross, the ‘keeper then quickly off his line to clear from Murphy.
Leicester made two changes at the break, Matty James on for King and Ignasi Miquel on for Moore.
Tunnicliffe had a chance to extend the lead inside the first minute of the second-half but Schmeichel did well to get down and make the save.
It was the Foxes who struck next though on 51 minutes, Dyer’s burst down the flank, Vardy knocked his cross back to Nugent and the frontman sent a half volley past Gerken into the net.
The Town ‘keeper beat out Vardy’s effort before the Foxes grabbed a second on 57 minutes. Danny Drinkwater released the rapid Dyer, he rounded Gerken and then found Nugent who guided the ball into the net.
Town made a double change just past the hour with Paul Taylor and Frank Nouble on for Anderson and Jay Tabb, Taylor soon in the action, finding space on the left but his cross was cleared by Wes Morgan.
Nouble and Skuse both had efforts blocked on the edge of the box and Town were inches away from an equaliser when Chambers headed Taylor’s cross just wide.
Vardy then set up Dyer with a quick break but the winger couldn’t keep his shot down, Vardy replaced by Chris Wood seconds later.
Town followed with a third change, Stephen Hunt on for his debut replacing Mings for the last 15 minutes.
Konchesky rattled one over the bar, Taylor tested Schmeichel with a chip, then Hunt fired across goal with Nouble just failing to get on the end of it.
McGoldrick, a threat throughout, whipped in a vicious curler that was just over as Town searched for an equaliser but Nugent was even closer with a right foot strike at the other end as the game entered added on time.
It didn’t matter, he’d done the damage.