Joe Willock scored a superb winner to earn Newcastle a fifth straight Premier League victory for the first time since 2014.
On the flip side, Graham Potter becomes the first Chelsea boss to lose three consecutive league matches since Jose Mourinho in 2015 as his side's poor form continues.
A key reason for the defeat was a dismal attacking display, registering just seven touches in the opposition box, their lowest since January against Manchester City.
The closest Chelsea went to scoring was Conor Gallagher forcing an acrobatic save from Nick Pope. No other goalkeeper has kept more clean sheets in the Premier League this season than Pope, with five of his seven coming at St James' Park.
The three points ensure Newcastle will be in the top three at Christmas for the first time since the 2001-02 campaign, when they were top.