The Finnish central defender grabbed the winner a minute before the break to ease their nerves against Bayer Leverkusen.
It was only his second goal in 26 European matches and gives Liverpool the slightest of advantages going into the return leg of this Champions League quarter-final next Tuesday.
Leverkusen were a much tighter unit than the one that conceded four goals to Arsenal at Highbury in the group stages.
It is going to be tough in Germany, no doubt about that, but Liverpool at least are still on course for a potential semi-final clash with Manchester United.
With manager Gerard Houllier in attendance and continuing his recovery from major heart surgery, it was widely expected Liverpool would be swept along on a wave of emotion. But they found the Bundesliga leaders difficult to break down.
French boss Houllier took his place on the touchline prior to kick-off, smiling warmly and chatting to those who greeted him.
The Kop were soon in full cry chanting "Allez Gerard Houllier" as the match got underway.
Emile Heskey showed no signs of suffering any effects from the knock he took on Saturday with a surging run down the right.
He whipped in a good cross after four minutes only for Leverkusen's Lucio to divert the ball to safety.
The German league's top side tried to step up the tempo and Yildiray Basturk flighted a ball to the far post. It was meant to release Oliver Neuville but was slightly over-hit and drifted out of play.
Heskey gave a show of strength after 10 minutes when he out-muscled Carsten Ramelow.
The England striker's shot from the edge of the area was well struck but drifted just wide of the target.
Lucio earned the first yellow card of the game for dissent after being upset at a challenge from Gerrard.
Liverpool were struggling to find their rhythm and John Arne Riise hoisted a long ball forward.
Ramelow only half cleared the ball and it left Gerrard time to weigh up his options but his finish was wasteful.
There was a scare for Liverpool when Ze Roberto played in Dimitar Berbatov. However his return ball was poor and Hyypia was able to clear easily.
A hanging cross from Gerrard from the left lifted the home supporters. Vladimir Smicer got on the end of it, only to direct his header wide.
Liverpool suddenly stepped up the pace and made the breakthrough a minute before half-time.
Riise swung in a corner from the left, which evaded the Leverkusen defence and reached Owen.
He cleverly pulled the back for the on-rushing Hyypia to steer his close range shot beyond goalkeeper Hans-Jorg Butt.
Ramelow was then booked for a rash challenge on Smicer which will rule him out of the return leg next Tuesday.
The timing could not have been better for Liverpool with the goal coming a minute before the break.
Leverkusen found themselves on the back foot a minute into the second half when Gerrard crossed the ball into the area.
With the Kop in full voice, Ramelow stood his ground to head the ball away for a corner.
Gerrard then tried to release Owen, who had not really been able to impose his pace on the opposition. But Lucio read the situation to hoist the ball back up field.
Gerrard then sent a superb 40-yard crossfield ball straight as an arrow to Danny Murphy. He was caught in two minds and delivered a poor cross.
Liverpool almost added a second in the 57th minute with a spectacular overhead kick by Riise from Smicer's corner which needed a full-length save from Butt.
The Leverkusen stopper showed remarkable agility to turn the shot away at the last minute.
Liverpool were growing in confidence and Riise was continually finding space down the left.
He got himself into a good position just outside the penalty area only for Butt to block his shot.
Leverkusen switched things around in the 65th minute, bringing on Boris Zivkovic for Berbatov.
Michael Ballack should have pulled them level in the 67th minute only to steer the ball wide in front of the posts from Ze Roberto's cross.
Jari Litmanen stepped off the bench in the 70th minute, replacing Owen, who had been struggling.
Murphy tried to play in the experienced Finland forward but his delivery went slightly behind him to the frustration of the crowd.
The supporters were looking for a second goal to ease the pressure in the away leg next week but they had to settle for a narrow victory.