Under Pearson's stewardship, the Foxes had a 100 per cent league record throughout January, with a 4-1 demolition of fellow promotion chasers Derby County the stand-out display.
Leicester have not lost a Championship game since early December and they now sit 10 points clear at the top of the table on the back of their impressive string of results.
Former Foxes manager Dave Bassett, who chairs the judging panel, says: "A fantastic month for Nigel Pearson which ended with a club record eighth league win in a row. Leicester have maintained their momentum and they are now in a great position at the top of the Sky Bet Championship."
Adam Le Fondre claimed the Sky Bet Championship Player of the Month award after netting hat-tricks in successive home games as he helped his side see off Bolton with a 7-1 win and then Blackpool with a 5-1 victory.
Reading boss Nigel Adkins hailed the striker as he saw his side climb the table with the help of Le Fondre's goals. "He's done really well, scoring two hat-tricks and for me the important thing is the partnership he's got with Pavel Pogrebnyak," he said. "They are working so hard for the team. We're always talking about Alfie being a goalscorer, but for me he's added the other side to his game in a really positive manner, so well done to him."
In Sky Bet League One, Leyton Orient boss Russell Slade landed the Manager of the Month award as his side won all four of their games in January to maintain their promotion charge.
Bassett said: "Leyton Orient's fine form in Sky Bet League One continued in January, recording four wins from four. What was particularly notable was that Russell's men scored ten and conceded just one to sustain their promotion push."
Peterborough United striker Nicky Ajose was in fine form throughout January, netting three times in five games, and he has subsequently been named as the Sky Bet League One Player of the Month.
Don Goodman, Sky Sports' Football League pundit, said: "Peterborough scored the most goals in the Sky Bet Football League in January - thanks in no small part to the contribution of returning winger Nicky Ajose. Five goals in as many matches made Darren Ferguson's decision to recall him from his loan spell look very smart business indeed."
Meanwhile, Fleetwood Town boss Graham Alexander has taken the Sky Bet League Two Manager of the Month award for January after taking 13 points from a possible 15.
The Cod Army are one of a number of sides battling at the top end of League Two and Bassett was full of praise for them. "Fleetwood showed excellent form throughout January, going unbeaten whilst winning four of their five matches," he said. "The promotion race in Sky Bet League Two is exciting and Graham's men are well placed as we approach a key stage in the season."
Oxford United's Ryan Clarke claimed the Sky Bet League Two Player of the Month award after keeping clean sheets in all four of his side's league outings during January.
Speaking of the goalkeeper, Goodman said: "Ryan's shot-stopping and command of his defence made January a month to remember for the U's keeper. It couldn't have gone any better for the goalkeeper than four clean sheets from four Sky Bet League Two games. Ryan fully deserves this award."