Leshabela, 20, has been in supreme form for the Premier League side's development squad since returning from the U-20 Afcon last month.
The promising midfielder, who recently signed his first professional contract, was awarded a starting berth against the German outfit after finding the net in the 2-1 loss to Tottenham's development side last Friday.
Bayern, who currently lead their domestic division, took the early initiative with an opening goal from Kwasi-Okyere Wriedt in the 13th minute, but the Foxes' 94th-minute effort from Alex Pascanu saw the tie move on to extra-time before the eventual 5-4 penalty shootout defeat.
Leshabela, who lasted 77 minutes into the game, enjoyed a good showing against the illustrious opposition and nearly found an equaliser in the first half with a rasping volley from outside the area.
Khanya Leshabela on the volley! ????— Leicester City (@LCFC) March 13, 2019
Almost for the #lcfcu23s midfielder...
With their European exploits now coming to an end, City turn their attention back to the Premier League 2 Division 1, where they are two points off third, and in the last 16 of the Premier League Cup.