In front of the Blue Army at King Power Stadium, defender Sam Hughes gave the Foxes the lead inside 120 seconds before Darnell Johnson and Admiral Muskwe made sure of the result.
The German visitors fielded a strong and experienced starting XI for the clash, but Steve Beaglehole's side were able to continue their encouraging start to the new campaign.
On the back of defeating Chelsea 2-0 last week, City made a commanding start with Hughes nodding a brilliant George Thomas corner beyond Hertha goalkeeper Luis Zwick.
Shortly after, the ball fell kindly for Josh Knight to lash it towards goal on the volley, but the Fleckney-based centre back got too much height on his effort from 18 yards.
On 21 minutes, Josh Gordon tried to catch Zwick off his line with a powerful drive from just outside the box, but the Hansa Rostock loanee saved at the second attempt.
The Foxes were in complete control during the first period and they asserted their dominance further with six minutes to go until the break when Johnson glanced his header into the corner.
City's young defender, who helped England's Under-19s lift the European Championships in Georgia this summer, was the beneficiary of another fine Thomas delivery to make it two.
After the interval, the hosts picked up where they left off and they extended their advantage even further when Muskwe latched onto Hughes' flick to blast it into the roof of the net.
It was proving to be a clinical display from Leicester, something Under-23s manager Beaglehole has worked on tirelessly in training at Belvoir Drive.
With just over 20 minutes remaining, Daniel Iversen was called upon to make a smart save to deny Sidney Friede from close range, somehow getting a hand on the ball it to tip it over.
But City ended the match comfortably and they now turn their attention to their Checkatrade Trophy visit to Carlisle United next week.
Petty Elated With Cup Victory
Ben Petty spoke to LCFC TV after his side's 3-0 win over Hertha Berlin in the Premier League International Cup.
City's super start to the match, courtesy of a well-placed header from Hughes, proved to be a springboard for them to go on and enjoy another memorable evening.
It was a goal which instantly rewrote Hertha's pre-match stratagem and put them in the enviable position of being able to invite pressure and break quickly.
Sam Hughes & George Thomas
The deliveries from Thomas were a useful outlet for the Foxes.
After a two-goal outing at Holmes Park on Friday, Thomas continued to impress with another expert display in the art of crossing.
While the ex-Coventry man failed to find the net on Filbert Way this time around, he played a key role in City's opening two goals, locating his intended targets with ease.
Where do we stand?
Sam Hughes celebrates
The former Chester defender celebrates with his Under-23s team-mates.
This victory puts Leicester at the top of the four-team Group B standings.
City will contest fixtures against Sunderland (away) and Legia Warsaw (home) in December as they look to go one stage further than last season and reach the knockout phase.
The Under-23s manager watches on from the dugout.
The Foxes next face a long trip to Brunton Park to tackle Sky Bet League 2 outfit Carlisle in the group stage of the Checkatrade Trophy on Tuesday evening (7:45pm kick-off).
Seven days later, an away day at Barnsley awaits the Foxes in the Premier League Cup before facing Tottenham Hotspur in Premier League 2 (away) on Friday 13 October.
City: Iversen, Pascanu, Debayo, Hughes, Knight, Johnson, Choudhury (c), Dewsbury-Hall (Ndukwu 66'), Muskwe, Thomas (Uche 77'), Gordon (Martis 59').
Subs not used: Wood, Bramley.
Goals: Hughes 2', Johnson 39', Muskwe 46'.
Hertha Berlin: Zwick (Bruggemeier 70'), T. Fuchs (c), Kurt, Kauter, Kiprit, Haubitz, Baak, Dardai (Blumberg 72'), Covic (Cakmak 45'), Friede, Beyer.
Subs not used: Egerer, Morack, Ogulcan Tezel, Marbach.
Referee: Peter Wright
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