It was their second season under the management of Kenny Dalglish, and as defending double winners they finished this season only having (jointly) won the FA Charity Shield, coming close to silverware as league runners-up and losing finalists in the League Cup.

They finished runners-up in the league nine points behind local rivals Everton, after an eventful title race which had seen them fight out with a resurgent Arsenal and Tottenham Hotspur as well as face surprise challenges during the season from unfancied sides including Norwich City, Luton Town and newly promoted Wimbledon.

At the end of the season, striker Ian Rush headed to Italy to sign for Juventus.

His successor in the Liverpool attack, John Aldridge, had been signed during the season from Oxford United.

After the season ended, Dalglish further enhanced Liverpool's forward positions with a move for Newcastle United striker Peter Beardsley and Watford winger John Barnes.