On 26 August 2020, Vardy signed a new contract with Leicester City until 2023. On 27 September, he scored his second hat-trick against Manchester City in a 5–2 away win at Etihad Stadium. On 25 October, he scored the only goal in a 1–0 win against Arsenal, to grant Leicester City their first away win at Arsenal since September 1973. On 6 December, while celebrating his last-minute goal in Leicester's 2–1 win against Sheffield United, Vardy slid into and destroyed a corner flag which was carrying the pride flag colours as part of Stonewall's Rainbow Laces campaign. Vardy later signed the flag and gave it to Foxes Pride, Leicester's LGBT+ supporters group. On 15 May 2021, he started in the 2021 FA Cup Final as Leicester defeated Chelsea 1–0, the clubs' first ever FA Cup victory. By playing in the final, Vardy became the first player to play in every round of the competition, including the preliminary stages.