Two goals from Matthew Barnes Homer gave the Town a 2-0 half time lead and Danny Crow all but sealed it in the second half before Newcastle got one back.
It was very much 'boys against men' as United's young side took a hammering.
Former United Academy boss Richard Money saw his Hatters side grab the lead on 28 minutes through Matthew Barnes-Homer.
Barnes-Homer snatched a second on the stroke of half-time to double the home side's lead.
Danny Crow put Luton further ahead just after the hour, but 10 minutes later Nile Ranger pulled one back after rounding goalkeeper Kevin Pilkington.
With three minutes left, Adam Newton completed the win for Luton with a spectacular 45-yard effort after a mistake by Jak Alnwick.
NEWCASTLE UTD XI: Alnwick, Newton, Dummett, Tozer (Grieve 46), J Henderson, Edmundsson (McLaughlin 60), Donaldson, Inman, Ranger (Ameobi 72), Vuckic, LuaLua (McDermott 60).