A late equaliser from Jamie Vardy denied us a fifth consecutive win after Eddie Nketiah was sent off in the closing stages.
We led for much of a captivating game thanks to a beautifully-crafted goal from Pierre-Emerick Aubameyang that owed so much to the work of Dani Ceballos and Bukayo Saka.
The outstanding Ceballos skipped past an opponent before picking out Saka's run with a raking pass down the right channel. Saka left Jonny Evans in a heap and squared for Aubameyang to apply a simple finish.
We would have had plenty more to show for a scintillating first-half performance were it not for Kaspar Schmeichel's heroics.
The Leicester goalkeeper saved from Kieran Tierney, Saka, Hector Bellerin and twice from Alex Lacazette as we forced the visitors back.
One of the top flight's top defences just couldn't live with our attacking threat at times. But the second goal didn't come, and that made life uncomfortable for us in the second half.
David Luiz tested Schmeichel from a free-kick and Alex Lacazette had a goal ruled out for offside.
But Leicester gradually got on top, and a straight red for Nketiah - following a VAR check that spotted a reckless challenge on James Justin - gave the visitors added impetus.
Vardy had already gone close a couple of times, and eventually he got the goal he always seems to score against us.
It took another lengthy VAR check for a possible offside - but the goal stood and the points were shared.
HOW IT HAPPENED
WHAT IT MEANS
Arteta stuck with the vast majority of the side that started our win at Wolves.
There were two changes: Lacazette came in for Nketiah and Bellerin replaced Cedric Soares.
Mari (ankle), Martinelli, Leno and Chambers (all knee) were sidelined.
Our next game is a huge and historic one.
It's the first men's north London derby at Tottenham Hotspur Stadium, and it kicks off at 4.30pm (UK time) on Sunday.
Copyright 2020 The Arsenal Football Club plc. Permission to use quotations from this article is granted subject to appropriate credit being given to www.arsenal.com as the source.