The Foxes hit the front first in the match through Jamie Vardy's clinical finish. Oli McBurnie came off the bench to equalise with a well-taken header mid-way through the second-half.
Youngster Harvey Barnes went one better though as shortly after entering the fray, he blitzed an absolute stunning strike into the top corner of the Sheffield United net to ensure that the East-Midlanders continued their unbeaten start to the campaign.
Story of the Match
Scorching heat in Sheffield
Leicester had the first real opportunity in the Steel City to open the scoring. Christian Fuchs, who was continuing to deputise for the injured Ben Chilwell, drilled a low free-kick just wide of Dean Henderson's far-post.
Sheffield-born Vardy then had a wonderful opportunity to get on the scoresheet as he connected with Youri Tielemans' fantastic cross but could only nod wide.
The hosts' first real opportunity came just after the half-hour mark as George Baldock found space on the corner of the box to fire in a powerful effort which was well-caught by Kasper Schmeichel.
Vardy notches first of the season
With the majority of the headlines before the match being devoted to Vardy returning to his home city, it was destined for him to get on the scoresheet. The 32-year-old was released by an excellent through-ball from James Maddison and stayed cool to bury the ball past Henderson at the near post.
Rodgers' troops then produced another great chance following half-time as Ayoze Perez led the break-away and was then eventually picked out again following a knock-down from Vardy but the Spaniard put his shot across the face of goal.
Substitutes make an impact
Chris Wilder's men reacted brilliantly after half-time and it was substitute McBurnie that made an impact. Barely six minutes after his introduction, the Scotsman did fantastically to leap above the Leicester defence to nod Baldock's brilliant cross into the far corner.
It was then the turn of one of Leicester's alterations to write his name all over the clash. After replacing Dennis Praet, Barnes reclaimed the lead for the Foxes as he picked up the ball on the edge of the area and lashed in an absolutely stunning half-volley that crashed into the top corner.
The hosts should have equalised once again as the ball wriggled it's way through to John Lundstram but an amazing save from Schmeichel saw it tipped away.
Sheffield United pushed for an equaliser and continued to haul numerous crosses into the Leicester box but the visitors stayed firm to claim the win.
Vardy back on the scoresheet
Just before Jamie Vardy opened the scoring for the Foxes, the hosts were given a huge warning. Spinning in-behind the Sheffield United defence, the striker rushed his shot and found the gloves of Henderson.
Barely a minute later though, he was played through by Maddison and was this time composed to fire the ball into the bottom corner to get off the mark for the new season. A few more like that and he will once again be right at the top of the Premier League goalscoring charts.
Choudhury steps into Ndidi's place
Since N'Golo Kante departed Leicester City, the search has always been on to find his successor. Nigerian midfielder Wilfred Ndidi has done a brilliant job in his two years at the club. However, he was missing on Saturday through injury and in his absence, Hamza Choudhury was brilliant.
The Leicester academy product read the game like a seasoned professional and was a huge influence in the midfield; tackling and putting in a series of crucial interceptions.
Spirit plentiful in Sheffield
Despite falling to their first defeat of the season, Wilder's troops have to be praised. The Blades went toe-to-toe with their established visitors and will feel slightly hard done by having not taken any points.
Their attitude after falling behind, and throughout the rest of the match, really was first class. Should they replicate those types of showings, especially at home, they should be nowhere near the relegation battle.