Kelechi Iheanacho’s 94th minute winner secured Leicester all three points against Everton, with a goal that was initially ruled out for offside.
Richarlison gave Everton the lead with just over 20 minutes played with a powerful close range header, before Jamie Vardy equalised for Leicester midway through the second half.
Iheanacho then scored in the 94th minute, only for the goal to be disallowed by the assistant referee for offside and then given after a VAR review.
Coming into the game Leicester sat third in the Premier League table, but only courtesy of goals scored after Manchester City dropped points with a 2-2 draw against Newcastle a day earlier.
The Foxes knew a win would close the tap to Liverpool at the top of the standings to eight points, but after a quiet opening ten minutes, it was Everton who had come the closest.
Djibril Sidibe’s powerful right-footed strike just evaded the top corner with the first effort of the game.
The home side’s best chance of the opening 15 minutes came through Ayoze Perez. The 26-year-old’s low effort just drifted wide of Jordan Pickford’s post when well place inside the Everton penalty area.
The foxes felt they should have had a penalty when Perez was met by the challenge of Michael Keane in the Everton penalty area, but replays showed a spot-kick would have been soft.
It was the away side who broke the deadlock on 23 minutes. A stunning ball into the box by Sidibe following a quick Everton counter-attack provided the pace for a bullet Richarlison header from close range that gave the away side a one goal advantage.
Leicester thought they had been awarded a penalty with 10 minutes to go before half time. Mason Holgate’s lose touch allowed Ben Chilwell to latch onto a ball inside the penalty area and the defender was brought down by the Everton right-back.
Referee Graham Scott pointed to the spot, but VAR overturned the decision, claiming Chilwell hadn’t been touched by Holgate.
The half ended with the score at 1-0 to Everton.
Leicester certainly weren’t at their best and Everton had made a positive start to the second half. Marco Silva’s side look dangerous from corners. A Keane header from close range was easily held by Kasper Schmeichel and then Richarlison found space but his header drifting over the top of the crossbar.
The home side looked dangerous on the break. Ricardo Pereira’s low shot was parried away by Pickford following a direct run at the Toffees’ defence.
The home fans were starting to get frustrated with their side and it was helping the away side. Everton had a fantastic chance through Holgatge, but after some neat footwork in the penalty area, Çağlar Soyuncu made the vital block.
But Leicester found their equalsier with just over 20 minutes left in the match. The Foxes finally found some space in the midfield and Wilfred Ndidi’s positive run forward found Iheanacho who slide the ball towards the back post for Vardy who couldn’t miss from just a couple of yards out. 1-1 the score.
Leicester were now on top and Everton were holding on for a point. Goalscorer Vardy played provider for James Maddison whose first time shot was well held from close range by Schmeichel.
The chances were coming thick and fast for Brendan Rodger’s side. Vardy was at the heart of all the action and the 32-year-old’s close range header was just too high to put Leicester in the lead.
Youri Tielemans was next to go close for Leicester, but his long range effort was narrowly wide of the post. It looked as though, if a winning goal was going to be scored in the game, the home side were the more likely to get it.
And it was Leicester who scored the winning goal in controversial circumstances. Iheanacho weaved his way into the Everton penalty area and fired past Schmeichel, only for the offside flag to rule out his goal.
Replays showed it was a tight call, and a VAR review revealed that the Nigerian striker was actually onside and the goal was given despite protests from the Everton players.
The goal set off wild scenes of celebration from the Leicester players, staff and fans inside the King Power Stadium.
Next up for Leicester is a home clash with manager-less Watford on Wednesday night. Everton take on Liverpool in the Merseyside derby on the same evening.
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