Following a 2-1 reverse at West Ham United last time out, the young Foxes were back on home soil in Seagrave for the visit of the Royals and they were ahead inside three minutes through Terell Pennant's well-struck penalty.
It was 2-0 to Leicester on 24 minutes, too, as Joe Wormleighton doubled their advantage, only for Harvey Maunder to halve it shortly afterwards with a spot-kick of his own.
Reading completed an admirable fightback before the break as Jahmari Clarke netted four minutes ahead of half-time. Wormleighton, though, restored Leicester's lead in the second period at LCFC Training Ground.
A helter-skelter clash's next turning point arrived on 61 minutes as Maunder levelled it again for Reading, before Louie Holzman's eventual winner, while Azeem Abdullah was later dismissed for the young Foxes.
West Bromwich Albion are next up for Leicester's Under-18s at the Birmingham County FA on Saturday 10 April (11am BST kick-off) and they currently sit 12th in the U18 Premier League South standings.
The details...
City: Doherty; Obi, Abdullah, Yfeko, Cover; Maswanhise (Alves 68'), T. Pennant (Popov 56'), Marcal-Madivadua, Braybrooke, Wormleighton; K. Pennant.
Subs not used: Chibueze, Kutshitnza, Dawkins.
Goals: T. Pennant 3' (pen), Wormleighton 24', 53'.