Taking on the current WSL champions in the early kick-off, it was the hosts who got going the quickest, taking the lead through Lioness Aggie Beever-Jones inside the first 10 minutes.
But the Foxes rallied and put in an effort to be proud of, narrowly missing out on taking something from Chelsea, which looked a possibility when Rosella Ayane's dipping effort in the final minutes was kept out by the woodwork.
Three games into the season, City sit on three points, with a visit to Ipswich Town up next on Wednesday evening, for the first Subway Women's League Cup fixture of the term.
Fast start to the half
Aggie Beever-Jones broke the deadlock at Kingsmeadow.
With the September sunshine beaming down on the Kingsmeadow turf, it was Chelsea who took an early advantage, when Beever-Jones was fed the ball in a tight position, which left her one-on-one to finish past Janina Leitzig.
Our German shot-stopper had moments herself in the first period to show her quality, however, most crucially seconds before the break when she tipped a long range effort over the bar, at full stretch.
Despite going a goal down after seven minutes, the Foxes steadied themselves and began to see more of the ball, looking comfortable against a fierce opponent, but unable to produce that final pass to create an opening at goal.
A City debut
Taking on instructions from the sideline.
The final addition from the summer's Transfer Deadline Day, Rosella Ayane, was brought onto the pitch for her Leicester debut, playing the final five minutes and injury time in London.
Deployed in the central position in the front line, her first touches on the ball saw her win a free-kick for her side on the edge of the hosts' penalty area. A clever routine which saw Sam Tierney lay the ball into the path of the onrushing Jutta Rantala, who edges back to full fitness, firing a low effort into a crowd of players before the danger was cleared.
In the final stages, the debutant would have our best chance of the game; as the ball bounced towards Ayane on the edge of the box. The Moroccan international sent a looping half-volley towards goal, which was only kept out by England's No.1, Hannah Hampton, with a fantastic save, with some help from the crossbar.
Focus switches to the League Cup
A performance to be proud of from the Foxes.
Having started the season with one win and two losses, to tough opposition, our focus changes quickly to a midweek fixture against Ipswich, who we'll face in the opening group stage game of the League Cup.
In Group D along with Ipswich, London City Lionesses and Crystal Palace, a good start to the competition against WSL2 opponents on Wednesday at JobServe Community Stadium (7:30pm GMT kick-off) would put us in a good position to progress to the knockout stages.