Jonny Evans' own goal was followed by goals from Diogo Jota and Roberto Firmino, leading to Brendan Rodgers' side being easily defeated by the current Premier League champions.
Overall, it was an evening full of poor performances from the Foxes, with Kasper Schmeichel being the only player who can be satisfied with his performance.
Outfought and outclassed
Leicester are now without a league win over the Merseyside team since 2017 and have conceded seven in the previous two meetings.
Like the Boxing Day defeat, the Foxes faced Jurgen Klopp's side in the top two and there was a sense of confidence as Sunday's game ticked over until the meeting at Anfield.
However, the champions produced better energy levels, endeavour, quality and intensity than their opponents.
The 5-4-1 formation has provided positive results and performances for Rodgers' men this season, with wins over Manchester City, Arsenal and Leeds United positioning the Blues into top spot ahead of the international break.
Against a very-changed Liverpool side, who were without a host of regulars in the XI, the defeated Foxes will be disappointed with the outcome.
Defensively, Wesley Fofana continued to stand out, but Marc Albrighton, Evans and Christian Fuchs all struggled to keep the hosts' dangermen quiet.
Rodgers got the wing-back selection wrong
After being chucked into the deep end towards the end of last season, and impressing, Luke Thomas made his first appearance of the season in the 2-1 victory over AEK Athens.
Three more starts followed, before being replaced by Albrighton at half-time in the 1-0 win over Wolves.
However, Rodgers opted for the ageing Albrighton against one of the best wingers in the league in Sadio Mane and it played a part in the defeat.
The Senegalese wide man was brilliantly denied by Schmeichel on three occasions after finding himself behind the right wing-back with ease.
One of the worries for Albrighton will be that his delivery was wasted when he was provided with the opportunity, one of the main traits Rodgers would have been looking for from the 31-year-old.
The defeat isn't because of Albrighton, but there is very little evidence that the tactical switch worked for Rodgers.
Games coming quickly to put it right
Unlike last season, Leicester are in four competitions this season, with UEFA Europa League returning this Thursday away at SC Braga.
They currently sit top of Group G after easing past the Portuguese side two weeks ago.
Following Sunday's disappointment, they have a tasty affair on their hands in the week with a brilliant opportunity to return to winning ways.
There will be concerns about the player's fitness, with Fulham visiting the King Power Stadium on Monday and the Foxes travelling to Ukraine the following Thursday.
However, a victory in Portugal will not only secure qualification to the knockout round of the competition, but provide encouragement and confidence ahead of the next home game.