Liverpool began the season in the third qualifying round of the Champions League, beating Israel's Maccabi Haifa on a 3–2 aggregate score, in a 2–1 win at Anfield.

The season started well for Craig Bellamy, a new signing from Blackburn Rovers, and Mark González, who returned from a loan spell at Real Sociedad: both made their debuts against Haifa, and both scored.

Peter Crouch helped finish the operation in Kyiv (the match was not played in Haifa due to security concerns).

Liverpool also won the Community Shield as goals from Crouch and John Arne Riise helped them beat Chelsea 2–1 at the Millennium Stadium.

Liverpool lost the Merseyside derby 3–0 at Goodison Park when Everton's Tim Cahill and Andrew Johnson scored once and twice respectively.

In the Champions League Liverpool beat Bordeaux 1–0 in France but lost a crucial derby match against Manchester United 2–0 at Old Trafford just four days later.

They then faced Bordeaux at Anfield, a match they won 3–0 thanks to Luis García (2) and Steven Gerrard, the captain's first goal of the season.

They knocked Barcelona out of the Champions League in the round of 16 on away goals after Craig Bellamy and John Arne Riise put two past Víctor Valdés at the Camp Nou.

In between the Barça games, Liverpool beat Sheffield United 4–0, with Robbie Fowler scoring twice from the penalty spot, which proved to be his last goals for the club.