The Reds captain spent five minutes examining the waxwork before he said: "You've missed a few spots haven't you?".
He also fixed the figure's hair as he posed for photographs with his two daughters Lilly-Ella and Lexie.
"It's an absolute thrill to have my very own figure," the 29-year-old said.
It is one of the first times a waxwork has been unveiled outside London - the ceremony took place in Liverpool due to his training schedule.
The "new" Steven Gerrard, which cost £150,000 to create, will be positioned near England teammate David Beckham in the museum's Sports Zone.
It is the first time a footballer has been immortalised in wax at Madame Tussauds since 2005 when Wayne Rooney entered the museum's hall of fame.
Liz Edwards, of Madame Tussauds in London, said: "His inclusion is in response to huge demand from the public and we know fans are going to enjoy getting up close to him in the run-up to the World Cup in June."
Source: BBC Sport
Source: BBC Sport