Liverpool looked to be in cruise control and took the lead through Mohamed Salah after just 15 minutes.
Philippe Coutinho, on his first start this season, doubled the visitor’s lead 10 minutes later.
However, a goal on the strike of half-time gave Leicester hope courtesy of a scrappy goal from Shinji Okazaki to make it 2-1.
After the restart the Reds reaffirmed their dominance and soon had their two-goal cushion back on 68 minutes through Jordan Henderson.
But a minute later Jamie Vardy headed home to once again pile the pressure on Liverpool, making it 3-2.
The home side were then handed a golden opportunity to level the game from the penalty spot after Simon Mignolet felled Vardy in the box.
But the striker could not convert and saw his effort saved the Belgium international goalkeeper.
The stop proved pivotal and secured all three points for Liverpool despite a barrage of late pressure from the Foxes.
The result sees the Reds jump up to fifth in the table, while Leicester remain in 16th place.
More to follow.