The Foxes knew that a good result would put them within touching distance of top spot - and they moved into a convincing three-goal lead by half time.
Paul Dickov opened the scoring just 17 minutes into the game and doubled his and his side's tally from the penalty spot 26 minutes in.
The demoralised Reading team then conceded a third from Matthew Heath, as the crowd turned against them.
The second half was a little better for The Royals, and a strike from Andy Hughes gave some brief cheer, but the damage had already been done.
Reading missed out on the chance of going fourth with a win - and now sit in seventh place, whilst few would bet against Leicester going up automatically if they can continue to show this kind of form.
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