Unbeaten in two ahead of this encounter, the young Foxes started in excellent fashion, opening up a three-goal lead by the 51st minute at LCFC Training Ground.
Yassin Toure opened the scoring midway through the first half, with City doubling their advantage through Liam McAlinney in the 32nd minute.
Mirsad Ali's effort, six minutes into the second period, made it 3-0 to Leicester's youngsters.
It was a frustrating ending, though, as Villa came back to make it 3-3.
Theodore Carroll, Jamaldeen Jimoh and Rory Wilson struck for the visitors to rescue a point in dramatic circumstances in Seagrave.
This result leaves the side coached by Adam Barradell eighth in the early U18 Premier League South standings, ahead of taking on Arsenal in Shenley on Saturday (11:30am BST kick-off).
The details...
City: French, Thomas, McAlinney, Khela, Ali (Sutherington 69'), Dyke, Ononaye, Donnelly, Amartey (Evans 68'), Toure (Guevare 68'), Otchere.
Subs not used: Diallo, McNab.
Goals: Toure 21', McAlinney 32, Ali 51'.