In November 1991, Parker left Forest to join Aston Villa for £650,000. Villa won the League Cup in 1994 and Parker made three appearances during their cup run, but didn't play in the final itself. After falling out of favour with Ron Atkinson he then returned to Division Two football to join Leicester City, winning promotion via the play-offs in his first season. Parker scored Leicester's equaliser in the final against Crystal Palace and was named as Leicester's player of the season. He also played as they won the League Cup in 1997, his third winners medal in the competition.