Islam Slimani scored a brilliant goal as Leicester beat Liverpool 2-0 in the third round of the Carabao Cup on Tuesday.
Substitute Shinji Okazaki opened the scoring in the 66th minute before Slimani fired in from outside the box to seal victory for the Foxes.
Liverpool, with Philippe Coutinho and Alex Oxlade-Chamberlain starting, had dominated the first half, but failed to take any of their chances.
Jurgen Klopp's side, who made the semi-finals last year and final in 2016, have now failed to win any of their last four matches.
Leicester, meanwhile, are into the fourth round for the first time since 2015, having recovered from a dismal first-half performance to progress.
Liverpool were dominant in the opening 45 minutes, with Andy Robertson providing plenty of attacking threat down the left side and Coutinho pulling the strings in the middle.
Oxlade-Chamberlain saw an early chance blocked from a Robertson cross before Dominic Solanke shot narrowly wide and Coutinho had an effort saved.
Leicester offered nothing in response and Robertson continued to create chances, crossing to the back post for Solanke to turn over and then putting in a ball that Coutinho almost tapped in. Solanke also lobbed onto the roof of the net towards the end of the half.
But, having replaced Coutinho at half-time, Liverpool lost their control of the game in the second half.
Leicester were forced into a change after Leonardo Ulloa was left dazed by a header, and it was his replacement, Okazaki, who scored the opener, prodding home in the 66th minute from Vicente Iborra's header back.
Oxlade-Chamberlain fired over and Ben Woodburn went close before Danny Ings came on for his first Liverpool appearance since October 2016.
However, it was Leicester who scored the decisive second as Slimani fired in a brilliant strike from outside the box.
Man of the match - Shinji Okazaki
Robertson and Coutinho were brilliant in the first half, but it was substitute Okazaki who proved key in Leicester winning the tie.
The Japan international gave the Foxes more energy up front and, after scoring the first goal, set up Slimani to add the second.
"Bringing him on was a bonus for us," said Foxes manager Craig Shakespeare. "I know what he is about, he gets in and around people and starts the pressing from the front, which we didn't do in the first half."
Pundit reaction
Emile Heskey on Sky Sports Football: "With the amount of possession Liverpool had and the chances they created, they should have won.
"Defensively they were not sound enough. It was a pretty simple ball to deal with for the first goal, the ball back in from a corner, and you just have to deal with the headers. Players are just standing there free.
"Alex Oxlade-Chamberlain was disappointing. Sometimes you forgot he was playing. You expect him to be all action down that wing and you didn't see it. In fairness, Ben Chilwell played a blinding game."
What's next?
The two sides meet again at the King Power Stadium on Saturday in the Premier League. Liverpool then travel to Spartak Moscow in the Champions League next Tuesday.