Birmingham City, showing great courage, began their fight for survival with a win that rates as their best in the Premiership - to the relief of manager Steve Bruce.
They took full advantage of another indifferent Liverpool performance that was only brightened by the goalscoring performance of Michael Owen who ended a barren spell with a characteristic strike after coming off the substitutes bench.
Birmingham might well have applied a Mike Tyson touch if Stan Lazaridis had opened the scoring after only 32 seconds.
Instead, the Australian, who has never scored a goal in the Premiership, headed high over the bar.
But Birmingham's early attacking thrust gave them considerable encouragement to take the game to Liverpool and there was no disputing that they deserved their first-half lead carved out by Stephen Clemence with his first goal since his £250,000 move from Tottenham.
The Merseyside club, however, were always dangerous on the break and it was only a timely interception by Clemence which prevented Danny Murphy getting in a shot.
Liverpool, currently struggling to make an impression in the Premiership, had another let-off when Christophe Dugarry had a shot on goal with the outside of his foot only to see the ball sail over the bar.
Another golden opportunity fell to Jeff Kenna following a quickly taken free kick by Lazaridis but the Republic of Ireland defender snatched at his shot and fired over the bar.
In the 34th minute Birmingham deservedly went ahead following yet another free kick when Clemence beat the tall Liverpool defenders to Robbie Savage's cross and headed to the right of Jerzy Dudek.
There was a lack of inspiration in Liverpool's play and Birmingham were able to see out the rest of the first half without too much trouble.
The closest Liverpool came to an equaliser was a free kick from skipper Sami Hyypia early in the second half.
This resulted in the belated introduction of Owen but it had little effect as Birmingham went on to increase their lead in the 68th minute.
Lazaridis, who had been brought down on the edge of the penalty area a few seconds earlier, won possession in midfield and knocked the ball into the path of Dugarry.
The Frenchman pushed a pass forward to the over-lapping Australian who put in a first-time cross which Clinton Morrison slammed home from close range for his sixth goal of the season.
Liverpool's hopes were lifted when Murphy's cross was knocked into the net by Owen in the 77th minute but Birmingham held on for a vital win.