In their first game after the World Cup, the Foxes trounced the Dons.
Two goals by Youri Tielemans and one by Ayoze Perez gave the Foxes a two- goal cushion at the break.
The hosts at Stadium Keynes did not make the most of their few chances.
The sharpness in the final third of the game was too much for the League One side.
Thirty-eight days after the last competitive game, Brendan Rodgers' side did not look like a team who were lacking match-sharpness and opened the scoring through Perez and Castagne.
Both efforts missed the target but they soon found a way to beat the goalkeeper when Tielemans was on hand to fire home the opener.
The second goal came when Perez produced a deft touch inside the 18-yard box to control a long ball and slot it into the back of the net.
The hosts struggled to make an impact and failed to take advantage of their best chance when Daniel Harvie hit a half-volley over the bar.
Vardy made it three as he nodded in Castagne's cross to make it a one-sided victory.