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Shortly before the half hour mark, City were celebrating a second as Foden finished off a lightning quick counter led by Bernardo Silva and Jack Grealish.
City kept their foot on the gas and two minutes later added a third as Gabriel Jesus' shot deflected off Foden and into the net - marking the Englishman's second goal of the evening.
The hosts emerged from the interval with some fight and determination, forcing Ederson into some smart saves.
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With just over ten minutes remaining, the Seagulls were handed a lifeline from the penalty spot as Alexis Mac Allister fired beyond Ederson, who got his hands on the ball but could not keep it out.
With the clock ticking deep into stoppage time, Mahrez added the icing onto the cake, finishing expertly from Foden's pass.
View the best images from the clash via our gallery below.