Goals from Harvey Griffiths, Nathan Fraser and Connor Ronan would see City's Under-21s on the reverse of a 3-0 scoreline at Aggborough Stadium.
Having been beaten by Arsenal 2-1 in the league last time out, Ben Petty hoped to return to winning ways by introducing three changes to the starting XI.
Chituru Odunze and Chris Popov were replaced by Arlo Doherty and Kasey McAteer, whilst Jahmari Lindsay was placed on the bench, allowing Shane Flynn a space in midfield.
On a wet night in Kidderminster, the rain was keen to make life difficult for both teams, with occasional downpours resulting in a heavy playing surface and match shirts.
It was the home side who adapted to the wet conditions first, controlling most of the ball in the opening stages of the game, and this possession led to them taking the lead within 10 minutes.
A left-field cross found its way to Griffiths on the edge of the Leicester box, who struck a first-timed effort, low and hard past Doherty, before clipping the inside of the post on its way in.
Over the next 20 minutes, Wolves would continue to threaten in search for a second goal, which they eventually found through Fraser. In the stage of play before the goal, Paul Appiah would deny a goalscoring opportunity by blocking a shot out for a corner.
However, Appiah's hard work would be undone by the resulting corner as Fraser sent a downwards header past the diving Doherty, giving the hosts a two-goal-lead.
Moments later, Wolves would be in again, this time through Chem Campbell. A powerful forward drive would open up space on the edge of City's box for the midfielder who tried his luck before seeing the ball connect with the far post and stay out.
The final play of the half would be Leicester's first in front of goal. A wayward pass from Wolverhampton's backline was intercepted by Zach Booth who immediately saw Sammy Braybrooke bursting into the space between the defenders, but as the chance revealed itself, it was as quickly gone, with Braybrooke sending his effort agonisingly past the post.
The second-half saw a brighter start from the travelling Foxes, who threatened with a chance eight minutes from the restart through McAteer, who curled a right-footed effort past Matija Sarkic's goal.
The switch of ends saw a different display from the Leicester youngsters as five minutes later, they were testing Sarkic again. An impressive dribbling run from Booth opened up a sight at goal, but the shot was deflected behind for a corner, which led to Will Alves seeing a shot claimed by the 'keeper.
Despite the much-improved attacking display, there was still work for Doherty to do at the other end, when Lee Harkin's far-range effort stung the hands of the Leicester 'keeper, who did well to deny the Wolves man.
In the 67th minute, Booth was in front of goal again when an Alves cross landed on the boot of the unmarked winger, but as he tried to place the ball into the far corner, the home side managed to get a body on the line and clear any danger.
With 15 minutes to go, the hosts relieved the pressure applied by Leicester's youngsters, with a stunning strike from Ronan. Picking the ball up inside City's half, the No.10 set his sights and found the top corner, confirming all three points for the home side.
City would continue to search for a way through the Wolves defence but to no avail. Lewis Brunt would send a volley over the bar before trickery from substitute Kian Pennant forced Sarkic into a smart save. But there was no way through a resilient Wolverhampton side, who saw out the victory.
Major moment – Conor Ronan's strike
Just when it seemed Leicester were in the ascendency, Wolves would settle the nerves with the best strike of the game. Curling an effort into the top corner from 25 yards out rounded off the victory for the home side.
Who impressed? – The Pennant brothers
Despite not finding the net, the introduction of Terell Pennant and Kian Pennant at the restart certainly made the Foxes look more dangerous in the final third. However, strong defending resulted in a clean sheet for the hosts.
Where do we stand? – 12th in PL2
The Foxes remain 12th in the Premier League 2 Division 1 standings, with eight points from their first 10 matches.
Coming up – Crystal Palace (A)
City's youngsters face a trip to the capital as they take on Crystal Palace Under-21s at Selhurst Park this Friday 4 November (7pm GMT kick-off), in Premier League 2 Division 1 action.
The details...
City: Doherty; Appiah, Brunt (C), Wilson-Brown, McAteer (Lindsay 72'); Braybrooke, Booth, Cartwright (Cover 46'), Flynn (K. Pennant 46'), Alves; Maswanhise (T. Pennant 46')
Sub not used: Chibueze
Photo credit: Wolverhampton Wanderers