The young Magpies scored three times in the opening 15 minutes at the Bodymoor Heath Training Ground, courtesy of Matheos Ferreira's brace and Seung-soo Park's first goal for the club since arriving from Suwon Bluewings last summer.
The visitors conceded twice before the half-time break following efforts from Cole Brannigan and Bradley Burrowes but Ferreira completed his hat-trick after the restart, netting his second penalty of the evening.
Despite Alfie Lynskey pulling a goal back for the Villans, who were then reduced to ten men in the closing stages after TJ Carroll's red card, Newcastle's second-string held firm to record a first win of 2026.
Newcastle took the lead inside six minutes through Ferreira as the Ashington-born forward, who netted a hat-trick in December's FA Youth Cup third round tie against Portsmouth, fired home from a tight angle after a sharp counter-attack.
Park doubled Newcastle's advantage three minutes later as the South Korea Under-20 international latched upon Owen Asemota's pass before curling the ball over the Villans goalkeeper.
United's youngsters extended their lead in the 15th minute as Ferreira netted from the penalty spot. After Park was fouled by Asemota inside the box, Ferreira was on hand to slot the resulting spot-kick into the net.
Villa pulled a goal back in the 41st minute through Brannigan, who fired a clinical first-time effort into the bottom corner following Trai-Varn Mulley's cutback from the right flank.
With the half-time whistle nearing, Newcastle suffered a further blow as Burrowes scored for the hosts, rifling a low shot beyond Magpies goalkeeper Aidan Harris.
Newcastle regained their two-goal cushion eight minutes after the restart as Ferreira completed his hat-trick. After Kyle Fitzgerald was felled inside the box, Ferreira's 12-yard attempt sneaked under Asemota.
A frantic league contest continued as Lynskey, introduced from Villa's bench, scored with his first touch of the game after heading home from Mulley's cross.
Sixteen year-old Michael Mills, who joined the Magpies from Port Vale as a 14-year-old, was handed his under-21s debut in the closing stages and played a key part in Villa being reduced to ten men.
The Manchester-born forward, who scored on his full debut for England at under-16 level, raced through on goal before being hacked down by Carroll, resulting in a straight red card for a last man foul.
Despite eight minutes of stoppage-time, Newcastle were able to prevail in a seven-goal thriller, ending a nine-game winless streak in the process.
Newcastle United Under-21s: Aidan Harris, Logan Watts, Dylan Charlton, Miodrag Pivaš (Isaac Moran 90), Ciaran Thompson (c), Mason Miley, Kyle Fitzgerald (Darren Palmer 76), Scott Bailey, Matheos Ferreira (Rory Finneran 90), Anthony Munda, Seung-soo Park (Michael Mills 76).
Subs not used: James Taylor.
