His low cross looked to have been turned in at the near post by David Norris but television replays showed that Ryan McGivern got the last touch and the on-loan Manchester City full-back was credited with an own goal.
It was the fourth successive match that Ipswich had opened the scoring within five minutes.
Leicester had scored in their last 11 games so Roy Keane's side faced a ough task to hold on to their lead.
After Robbie Neilson and Richie Wellens had sent shots wide, only a goalline clearance by Grant Leadbitter denied Steve Howard an equalising goal just fter the half-hour mark.
But Ipswich were still a threat and Chris Weale was called into action to tip efforts from Walters and former Fox Gareth McAuley over the crossbar.
However, Leicester were level after 38 minutes and it was a bad goal to oncede from Ipswich's point of view.
Lloyd Dyer cut inside from the right-hand side, Keane's side had a couple of opportunities to clear the ball but it eventually broke to Howard just inside
the 18-yard box and the burly striker beat Arran Lee-Barrett with a low shot into the corner.
Barrett got away with fumbling a headed effort from Matty Fryatt early in the second half before Walters headed wide at the other end just before the hour mark.
There had been a fiery undercurrent to the game and it threatened to boil over following a tangle between Norris and Fryatt in the centre circle.
It sparked a melee involving players from both sides but referee Mark Haywood opted to keep his cards in his pocket after consulting his assistant.
Soon afterwards, Leicester's leading scorer Fryatt was then denied his 13th goal of the season by a superb save from Barrett.
Leadbitter had the final chance of the game but his shot from the edge of the area cleared the crossbar.
The Foxes remain in fifth place in the Championship while Ipswich's resurgence continues - they have lost only once in the league in 13 matches - but they stay in 18th position.