City's youngsters are now without a win in three, losing out to the Gunners at LCFC Training ground, despite three goals from Josh King, Lorenzo Strachan and Louis Page.
The Foxes did continue their impressive goalscoring form, however, with 24 goals in the last seven games, previously earning a point against Fulham a couple weeks back. Arsenal took the lead after 18 minutes through Aleksander Marciniak before King, assisted by Luqman Aideed, levelled things back up again shortly afterwards.
Max Dowman netted a brace, with a goal either side of the break, to increase the visitors' advantage before Strachan put us back in contention.
Goal number seven of the season for King across the Academy groups.
Sixty seconds later though, Dowman completed his hat-trick, converting his spot kick making it 4-2, but once again, Leicester kept pushing.
Page scored with 15 minutes to go for the Foxes, who would end the game with 10 men, following Will Daniels late dismissal, allowing the opportunity for the north London outfit to confirm victory with Brando Bailey-Joseph scored in injury time.
A hectic morning in the East Midlands, our Under-18s now need to regroup and recover ahead of their next fixture, when they meet Tottenham Hotspur on Saturday 26 April (11:30am BST kick-off), once again at home, as we look to improve on our ninth-place position in the U18 Premier League.
The details
City: McNab; Diallo, Adedeji, Khela, Daniels; Strachan (Owusu 71'), Akolbire (Motsi 80'), Page, Aideed (Omobolaji 79'); King, Hutchinson.
Unused subs: Donohue, Jacklin.
Goals: King 23', Strachan 63', Page 75'.