Match pictures: Images from U21s clash against Newcastle
The clash at Villa Park came to life in the second-half with three goals in the space of 15 minutes.
After edging a goalless first period in terms of chances, Villa fell behind to a strike from Newcastle's Adam Campbell just before the hour mark.
But they equalised on 70 minutes with a well-crafted goal from Graham Burke, who controlled an incisive pass from Samir Carruthers before shooting past goalkeeper Jak Alnwick.
However, Newcastle regained the lead three minutes later through Mehdi Abeid.
Striker Jordan Bowery impressed once again before being forced off with a niggle just before half-time.
Another deadline day signing, Ashley Westwood was also given the chance to shine, while Enda Stevens returned from a hamstring injury to play his first game for over a month.
The result leaves Villa four points off the top of Group 2 with crucial away games against Stoke City and Sunderland coming up on October 29 and November 1 respectively.
Click here to see an image gallery from the Villa v Newcastle U21 clash.