The Lions 25.12 (162) overpowered the Bombers 14.12 (96) in the second half of the match with 12 goals to three to record an emphatic 66-point victory - the club's ninth and biggest win of the season.
With St Kilda dropping its past two games after notching up a club record of 10 successive wins, the Lions have re-emerged as the number one contender for this year's flag.
Despite losing to the Saints by one point in controversial circumstances at the Dome in round six, the Lions have also accounted for Melbourne, Port Adelaide and Sydney - the club's nearest rivals on the ladder.
And considering the Lions went into the game without premiership players Blake Caracella, Shaun Hart, Clark Keating, Alastair Lynch, Beau McDonald and Craig McRae, who were all sidelined through injury, plus Brad Scott, who was a late withdrawal - the Lions are still far from fielding their best 22.
Lions coach Leigh Matthews was full of praise for his team's performance.
"The first half was fantastic, but I guess from our point of view, compared to the opposition, the last two and a half quarters were exceptional," Matthews said.
"They were really good. Our guys were able to start to control the centre bounces, get it forward and we started to score so the scoreboard really opened up."
"That first part of the game was bang, bang, bang, bang (but) our scoring power in the second half was exceptional. It was a marvellous effort from our guys."
The Lions' 'fab four' - Michael Voss, Simon Black, Jason Akermanis and Nigel Lappin - were all outstanding contributors.
But the 'fifth Beatle' or the Billy Preston of the side, Luke Power, should somehow be squeezed into the mix as they combined for over 120 disposals.
Daniel Bradshaw was a match-winner up forward with seven goals in an outstanding display, his best effort this season, while Jonathan Brown finished the match with three goals.
At the opposite end, Essendon's Matthew Lloyd was his side's best player for the night, finishing with five goals.
In his 200th AFL game, Akermanis got the Lions off to a flyer when he slammed home the first goal of the match within the opening minute. His goal typified a pulsating quarter from both teams.
The Brownlow Medallist was everywhere early in the first term and by the 11 minute-mark he had two to his name as the Lions led by 18 points. But the visitors' dominance was quickly matched by the Bombers.
Essendon booted six of the remaining seven goals for the term and not only hit the front for the first time, but gained a 13-point lead at quarter-time.
Lloyd was pivotal in the Bombers' resurgence, booting three goals by the first break. He almost had four to his name, but his fourth shot at goal scraped the post.
The frenetic pace, the attack on the ball and the exquisite skills shown from both sides had pundits talking it up as the most entertaining first term of the season. And it was hard to argue.
The second term proved to be another highly entertaining quarter of football and although the Lions dominated with eight goals to four, the visitors led by just nine points at half-time.
Nathan Lovett-Murray made it five in a row for the Bombers when he registered the first major of the second term which gave his side a 19-point lead at the five-minute mark.
And although the home side looked set to break away, the Lions fought back brilliantly, courtesy of some great finishing up forward from Bradshaw, who booted an incredible five goals for the quarter.
At one point, Bradshaw added three in three minutes which helped the Lions regain the lead at the 19-minute mark. It was the first time the Lions led in the match since the 23-minute mark of the first term.
Dashing youngster Anthony Corrie also chipped in with two in two minutes during the quarter, yet his first one came in controversial circumstances.
The young Northern Territorian received a late knock from Essendon defender Dustin Fletcher, after he had taken a mark while running back with the flight of the ball. With Corrie on the deck, a scuffle developed.
As Lions' doctor Paul McConnell was attempting to attend to Corrie, he was involved in a tangle with Essendon midfielder Damien Peverill which left the medico flat on his back.
This led to Peverill being reported for misconduct, while Fletcher also had his name in the book for charging Corrie.
But if the first half was anything to go by, the second half was looming as another cracker.
Yet it wasn't the case, as the Lions blew the game apart in the third quarter, booting seven goals to one, with Essendon's Adam McPhee his side's lone goalscorer.
After booting the final two majors before the main break, the Lions made it seven in a row when they slammed on five unanswered goals by the 16-minute mark of the third term. The Lions then led by 49 points at the final change.
With the result all but over, the Lions added five goals - including four in succession - to two in the final term, to record their greatest-ever victory over the Bombers, eclipsing the 2002 record of 50 points.
Essendon coach Kevin Sheedy said the Lions reminded him of the 1983-84 Hawthorn sides, which, he said, used to 'belt' the Bombers.
"They're an excellent side, full credit to them," Sheedy said in his post-match media conference.
"We played well for an hour - we've just got to get the next hour right. If you look at that, that's about the way you have to see this."
Essendon: 7.2 11.4 12.8 14.12 (96)
Brisbane Lions: 5.1 13.3 20.9 25.12 (162)
Goals: Essendon: Lloyd 5, McPhee 2, Hird, M.Johnson, Lovett-Murray, Lucas, Ramanauskas, Solomon, Stanton
Brisbane Lions: Bradshaw 7, Akermanis 3, Brown 3, Corrie 2, Pike 2, Power 2, C.Scott 2, Voss 2, Black, Notting
Best: Essendon: Lloyd, Hird, M.Johnson, J.Johnson
Brisbane Lions: Voss, Lappin, Bradshaw, Black, Akermanis, Power, Brown, Leppitsch, Johnson
Injuries: Essendon: Rioli (hamstring), Wellman (hamstring)
Brisbane Lions: Nil
Changes: Essendon Nil
Brisbane Lions: B.Scott (hamstring) replaced in selected side by Brennan.
Reports: Essendon Dustin Fletcher reported by field umpire Derek Woodcock for charging Anthony Corrie. Damien Peverill reported by field umpire Martin Ellis for misconduct for pushing Brisbane Lions doctor Paul McConnell.
Umpires: Allen, Ellis, Woodcock
Crowd: 50,003
