The Blues were well and truly outplayed in the first half against the Premier League champions, but managed to beat the Foxes in extra time in a 4-2 victory. Everton suffered a disappointing 2-0 loss at home to Norwich.
Meanwhile, Liverpool and Arsenal made light work of Derby County and Nottingham Forest, respectively. Bournemouth also suffered a shock defeat to Preston thanks to a hat-trick from Simon Makeniok.
The full results are as follows.
Bournemouth 2-3 (AET) Preston North End
Brighton 1-2 Reading
Derby 0-3 Liverpool
Everton 0-2 Norwich
Leeds 1-0 Blackburn
Leicester 2-4 (AET) Chelsea
Newcastle 2-0 Wolves
Nottingham Forest 0-4 Arsenal