The Hatters found little time to attack as Reading forced them onto the defence from the whistle.
The Royals kept possession for most of the game and took two goals in the first-half before adding three more after the break.
Luton's Ryan Charles scored a late consolation but the Hatters were unable to pull themselves back level.
Conrad Logan made his debut for the Hatters in their Carling Cup match against Reading.
Keith Keane, Tristan Plummer and Kevin Watson were also included in the starting line-up.
Reading had the early chances with a shot on four minutes. James Henry played a through ball to Shane Long who chipped his attempt over the crossbar.
And it was no surprise when they took the lead on the 11th minute, after Noel Hunt successfully headed in a Stephen Hunt corner.
Reading continued to put pressure on the Hatters defence and doubled their lead just three minutes later. This time it was Noel Hunt who supplied the ball to Stephen Hunt, who fired in the shot past the outstretched arms of Logan.
Luton got their first chance of the game in the 16th minute, with Sam Parkin trying his luck from the edge of the box.
The Hatters had a great opportunity to get back in the game just before half-time when Chris Martin's effort forced the Reading keeper to make an impressive double save.
HALF-TIME: READING 2-0 LUTON TOWN
Reading got off to another good start after the break, scoring twice in one minute.
The first came in the 55th minute from another set piece when Alex Pearce headed in a corner before a low cross from Noel Hunt allowed Jem Karacan to nudge the ball under the keeper.
Kevin Watson had Luton's best chance of the second half when he turned a cross by George Pilkington from just inside the Reading half goalwards.
However it wasn't to be and Reading finished of the game with another goal. Noel Hunt worked his way around the defence before passing to James Henry who added number five on the 75th minute.
Substitute Ryan Charles gave the Hatters a late consolation goal on 79 minutes.
Following a battle in defence Tristan Plummer managed to slot the ball through to Charles who side-footed it past Adam Federici.
FULL-TIME: READING 5-1 LUTON TOWN
Reading: Federici, S Hunt, N Hunt, Harper (Sigurdsson 59), Karacan, Long (Mooney 59), Pearce, Henry, Duberry (Ingimarsson 21), Golbourne, Kelly (81, no replacement)
Subs not used: Kebe, Convey, Rosenior, Andersen
Bookings: Noel Hunt (74)
Luton Town: Logan, Keane, Gnakpa, Davis (Jarvis 46), Pilkington, Nicholls, Martin (Hall 82), Plummer, Emanuel, Watson, Parkin (Charles 63)
Subs not used: Brill, Roper, Asafu-Adjaye, Spillane
Bookings: Chris Martin (82)
Referee: D Whitestone
Attendance: 7,498 (984 from Luton)
