The Club's Under-21s will play in Premier League 2 Division 2 next term as a result of this reverse, which leaves them bottom of the Division 1 standings. Tawanda Maswanhise made it two goals in seven days, however first-half strikes from Francis Okoronkwo, Halid Djankpata and Stan Mills, plus a goal from Liam Higgins after the break, condemned City to defeat.
The young Foxes were back in action in north Leicestershire seven days after dispatching Manchester United 3-2, as Brandon Cover netted an injury-time winner, and there were only two changes to the starting XI, with Harvey Godsmark-Ford and Mirsad Ali coming in.
The deadlock was broken just four minutes in when Everton striker Okoronkwo ran onto a long ball over the top of the Leicester defence, and he finished low past Chituru Odunze, clipping the inside of the post on the way through.
The hosts did have a good chance 17 minutes in when Joe Wormleighton delivered a left-footed cross into Chris Popov, but the striker was inches away from making a connection as the ball went behind for a goal kick.
Just as Leicester look to get back into it, Everton doubled their lead as Stan Mills picked out Djankpata in the box, who on the half-volley, lifted it past Odunze, into the back of the net.
Just before the half-an-hour mark, the Toffees added a third when a Djankpata header was well saved by Odunze, but Mills was on hand to fire into the roof of the net, giving Everton a commanding lead in the first half.
In the second period, the Foxes had an injection of confidence and they quickly drew a goal back when Cover was tripped inside the box by Katia Kouyate, leaving the opportunity for Maswanhise to score his second goal in two games, as he fired past the Everton 'keeper, into the top right corner of the goal.
Minutes later, City looked on for a turnaround when the ball was bouncing around the visitors' box, but substitute Kian Pennant could only wonder how his connection sent the chance over the bar, instead of nestling into the back of an empty net.
Despite Leicester's surge to get back into the match, it was Everton who found the next goal of the game when Higgins, off the bench, drilled a low effort past Odunze, taking a deflection off the 'keeper on the way through from close range.
Over the final 10 minutes, the home side continued to give it their all in search of a second goal for themselves, however the gap was too big and Everton were just too strong.
Major moment – Everton's early goal
Francis Okoronkwo opened the scoring less than five minutes in and this gave Everton the confidence to score two more before the 30-minute mark, putting the game out of reach for Leicester.
Where do we stand? – 14th in PL2
Tonight's result confirms that City's Under-21s will finish the 2022/23 campaign in the bottom two spaces in Premier League 2 Division 1, and will be playing Division 2 football next season. They're currently 14th, on 15 points, 10 adrift of 12th-placed West Ham United with three games to play.
Coming up – West Ham United (A)
The young Foxes travel to the capital on Friday evening to face West Ham United at Rush Green, with a 7pm BST kick-off.
The details...
City: Odunze; Wormleighton, Brunt (C), Godsmark-Ford (Cartwright 46'), Ali; B. Amartey, Cover (Briggs 80'); Booth (K. Pennant 46'), Marcal-Madivadua, Maswanhise; Popov (Richards 71')
Sub not used: Doherty
Goal: Maswanhise 60' (P)