A man has been arrested after police broke down the door to a house in Shepshed and found the body of a 67-year-old woman.
Officers were called to the home, in Rockingham Close, after receiving reports that a woman was being held against her will.
They arrived at the house, in the quiet residential road, at about 2.30am today.
Police had to break into the home, waking residents as they forced entry.
They discovered the body of an elderly woman who they say had been stabbed.
A second woman, aged 33, was taken to hospital with "non-life threatening injuries," a police spokeswoman said.
The road was closed off for most of today to allow forensic examinations to take place.
Police have arrested a 36-year-old man, who is currently being treated in hospital, and confirmed they are not looking for anyone else connected with the incident.
Neighbours who knew the victim were keeping tight-lipped following the dramatic events.
The area remained closed for most of the day - with no cars being allowed in or out of the quiet road.
One lady, who asked not to be named, said: "We woke up at about 3am and everything was cordoned off.
"There was this loud banging that woke everyone up - it must have been the police trying to knock down the door. Everyone heard it.
"I don't really know the people who live there, they keep themselves to themselves.
Andrew Lau, 37, who lives opposite the house, said: "It was about 3am and there was a lot of blue lights and noise.
"I just thought there had been a burglary and they were after someone.
"I went back to sleep and when I woke up the whole road had been cordoned off and there were forensic guys everywhere."
A third resident, who asked not to be identified, said officers were conducting door-to-door inquiries, but kept the details of the incident under wraps.
"They came round asking us questions," he said. "But they wouldn't say what had happened.
"It was a bit scary to be honest, I've got kids and I didn't know who was out there or what they had done.
"When they finally told us I was quite shocked. It's usually very quiet round here."
Resident said officers lifted the cordon after midday and by evening all traces of the police were gone except for two constables who kept watch over the house to make sure the scene was preserved.
A spokeswoman for the police said: "Police were called to an address on Rockingham Close, in Shepshed, Loughborough, at 2.32am this morning (Saturday, October 11) following reports that a woman was being held against her will.
"Officers arrived at the scene and forced entry into the property and found the body of a 67-year-old woman. She had been stabbed. Another woman, who is 33, has been taken to hospital with non-life threatening injuries.
"A 36-year-old man has been arrested and is being treated in hospital. Leicestershire Police are not looking for anyone else in connection with this incident."