A stunning David Cotterill strike wasn't enough for the Swans as they exited the FA Cup at the hands of Leicester.
The on loan winger fired the visitors in front with a well taken strike early on but Andy King levelled for the Foxes shortly before the break.
Leicester enjoyed the majority of possession in the second-half but had to wait until two minutes before time when substitute Dany N'Guessan headed his side into round four.
Garry Monk started his first game since October as Paulo made four changes to his side for this FA Cup tie.
The captain made his first ever Swans appearance from the bench last week to fill the void left following Albert Serran's dismissal and he was partnered at the back by the Spaniard.
Marcos Painter also featured for the first time since October as he replacesd Fede Bessone at left-back.
The two other changes were in midfield where Jordi Lopez occupies the holding midfield role in place of Leon Britton while David Cotterill started out wide in the absence of Nathan Dyer.
Leicester: Chris Weale, Robbie Neilson, Michael Morrison, Jack Hobbs, Ryan McGivern, Andy King, Matt Oakley (C) (Dany N'Guessan, 76'), Richie Wellens, Lloyd Dyer (Paul Gallagher, 58'), Matty Fryatt, Steve Howard (Yann Kermorgant, 76').
Not Used: Conrad Logan (GK), Nicky Adams, Luke O'Neill, Tom Parkes.
Swans:Dorus de Vries; Albert Serran, Garry Monk(C), Alan Tate, Marcos Painter; Jordi Lopez, Joe Allen (Mark Gower, 78'), Darren Pratley (Stephen Dobbie, 90+1'), David Cotterill, Cedric van der Gun; Gorka Pintado (Lee Trundle, 81').
Not Used:David Cornell (GK), Tom Butler, Ashley Williams, Jazz Richards.
Attendance: 12,307 Away: 1,334
Referee: P Taylor (Hertfordshire)
Memories of the opening day reverse at the Walkers Stadium came flooding back when both of these sides were paired together in round three of the FA Cup.
On that occasion the visitors enjoyed large spells of dominance during the first-half, taking the lead through Ashley Williams in the process, and history could have repeated itself within the first four minutes of this contest.
Despite a flurry of Leicester attacks early on, the Swans embarked on a dangerous counter attacking move orchestrated by the returning Jordi Lopez.
The midfielder stole possession from Richie Wellens inside the centre circle before sending Darren Pratley on his way towards goal.
The five-goal joint top-scorer rode two challenges before skipping his way to the byline, he pulled the ball across where Cedric van der Gun was inches away from connecting with what would have been a goalbound effort. It fell to the feet of David Cotterill who cut inside but saw his effort blocked.
But the on loan winger showed exactly why Paulo Sousa wanted to bring him to south west Wales with a piece of magic five minutes later.
Joe Allen fed the Wales international midway inside the Foxes half, he strode forward and unleashed an unstoppable right-footed drive which flew beyond the grasp of Chris Weale and into the net.
Leicester attempted to battle their way back into this game and were showing great strength down the middle and out wide, but as we approached the midway point Gorka Pintado, sporting a new hair style, tested Weale from the angle but the stopper was equal to his stinging effort.
Another counter attacking Swans move on 24 minutes saw the Spanish striker play van der Gun through on goal but, as the Dutchman reached the edge of the area, the ball lodged beneath his feet and was eventually cleared from danger.
Dorus de Vries was forced into making his first stop two minutes later, denying Matty Fryatt from 20-yards, while the goalkeeper performed some heroic saves to keep his side in the game on the half-hour.
Firsty a quickly taken corner by Lloyd Dyer was pulled back to Ryan McGivern, he pulled it across for Welshman Andy King to fire a strong shot at goal which was superbly palmed away by De Vries; skipper Matt Oakley was first on the scene with the follow-up but he was also denied by the Dutch maestro.
His opposite number Chris Weale had some business to attend down at the other end almost immediately afterwards, the stopper pushing a wicked Joe Allen strike from distance around the post for a corner.
The Swans were dangerous going forward as they went seeking a second, and Darren Pratley was gifted another opportunity seven minutes before the break, firing across the face of goal, but moments later the visitors were handed a massive sucker punch - the ball was pulled back to Andy King on the edge of the area who coolly powered a leveller beyond Dorus de Vries.
Pintado's header from Cotterill's cross in the closing stages gave the Swans a chance to restore their lead but that effort fell just the wrong side of the post.
Half-Time: Leicester 1 Swans 1
Despite a nervy start to the second period the visitors carved out the best chance following the break - Gorka Pintado raced onto the ball on the right-hand side and crossed into the middle where three Swansea City players were placed.
The ball couldn't be cleared by the Foxes' centre-half pairing but Joe Allen, Cedric van der Gun and Darren Pratley were all placed to pounce on the loose ball, but failed to connect in front of goal.
Allen then saw an ambitious effort fly high into the stand behind the goal while a 54th minute Jordi Lopez strike from distance bounced in front of Weale but the former Yeovil 'keeper was able to collect.
Leicester replied with a Michael Morrison effort which deflected over the bar but a fine move started and finished by Cotterill almost saw the winger add a second for his side, but Weale again was equal to his efforts to deny him from 20-yards just after the hour.
Nigel Pearson's side were enjoying long spells of possession and increased the pressure on Dorus de Vries and his defence.
The Dutchman was again forced to save from close-range while Fryatt tested him with a weak strike from just outside the area 15 minutes from time.
Mark Gower made his long awaited return from injury as he replaced Joe Allen in midfield while there was also change in attack with just under 10 minutes remaining, Lee Trundle came on in place of Gorka Pintado.
Richie Wellens had a golden chance to put the hosts in front five minutes before time but de Vries was able to collect his weak strike from close-range, while Trundle almost did the same down the other end.
The Swans were awarded a free-kick yards outside the area for handball, Mark Gower, Jordi Lopez and Trundle all stood over the ball but it was the latter who struck it just past the post.
But just like at the end of the first-half the Swans were handed a massive blow as Leicester added a second through substitute Dany N'Guessan whose header from six-yards struck the back of the net.
Stephen Dobbie was thrown on in injury-time but it was too little, too late for Paulo's side as their time in the FA Cup was brought to an end.