The Lady Dragons and Lady Bulldogs fought into overtime in the fifth game, before Millsap pulled it out 20-18.
Chico fell behind 25-19 but evened the match with a 25-21 win. Millsap stormed back 25-10 to edge in front, but the Lady Dragons rebounded for another 25-21 victory to force the deciding fifth game.
"It was a hard-fought game and a tough loss," said Coach Brent Hand.
"The girls continue to show character and resilience."
It was good to see the intensity and focus of the younger players, as well as some of the older ones, he said.
Less than one-third of Chico's points came from kills, 31-of-97. Alyssa Bowyer and Shelby Collins each recorded eight, Mallori Moss six, Melanie Gates five and Hannah Avants three. Avants also blocked two shots.
Molli Umphress set up 23 assists and Kim Workman seven.
Collins dug out 17 Millsap shots, Avants 10, Moss nine and Umphress and Bowyer five apiece.
The loss dropped Chico to 1-5 to complete the first half of district play.