The England striker delicately lifted Steven Gerrard's pass over Thomas Sorensen on 55 minutes to defeat plucky Sunderland as the Reds made up ground on leaders Arsenal.
Liverpool boss Gerard Houllier went on to the offensive in a bid to sweep away his side's Champions League misery by fielding three strikers at Sunderland.
Michael Owen, Nicolas Anelka and Jari Litmanen were all included in the starting line-up as Emile Heskey missed out with a hamstring injury.
Danny Murphy had to make do with a seat on the bench, but Sami Hyypia shook off a bout of 'flu to retain his place in central defence.
Sunderland fielded the same side which started the 2-0 defeat at Leeds last Sunday after Kevin Phillips recovered from a stomach muscle injury, but Patrick Mboma and Michael Gray missed out with knee and back injuries respectively.
The visitors lined up with Litmanen playing in the hole behind Owen and Anelka, and Dietmar Hamann in a midfield holding role.
But it was Sunderland who started the brighter, and as Liverpool looked uncharacteristically shaky at the back, Kevin Kilbane created a fourth-minute chance for Kevin Phillips - captaining the side in Gray's absence - but his header was scrambled away.
However, Anelka served warning of his potency two minutes later when he stretched his legs down the left and then attempted to find Owen in acres of space, but his misplaced pass allowed the Black Cats to re-group.
In an even start, it was Liverpool who created the better chances and home keeper Thomas Sorensen was forced to concede a 10th-minute corner after Joachim Bjorklund's loose header fell nicely for John Arne Riise, and he sent in a dipping shot which bounced nastily in front of the Dane.
The Norwegian had the goal in his sights again six minutes later when he took aim from Litmanen's lay-off, but this time his rising drive climbed just too high.
However, the Wearsiders again put Jerzy Dudek's goal under pressure with 21 minutes gone when Phillips' flick header from a Claudio Reyna cross came back off a defender and former Liverpool midfielder Jason McAteer smashed a shot over the bar.
Riise's long throw was proving a dangerous weapon, and it provided Litmanen with an opportunity four minutes later after Anelka had headed the ball down, but the Finn's shot through a crowded penalty area was blocked.
McAteer played Phillips in over the top on 27 minutes as Stephane Henchoz got his bearings all wrong, but the England striker could not collect the ball as it dropped and the Swiss international headed safely back to Dudek.
Litmanen's quick feet allowed him the time to pick out Riise's run on the half-hour and it looked bleak for the home side as he cut inside Bjorklund, but Jody Craddock got in a vital block to protect Sorensen.
Sunderland were having to defend in numbers, but they were doing so to good effect as they attempted to hustle Liverpool out of possession and not allow them time on the ball.
And with left full-back George McCartney finding plenty of space to get beyond midfielder Kevin Kilbane, they started to stretch the visitors once again.
But Anelka sniffed an opening five minutes before the break when he picked up the ball wide on the right-hand side of the penalty area, although his shot flew high and wide.
Craddock again came to Sunderland's rescue four minutes later as he threw himself into the path of Owen's shot after Anelka had streaked away down the left and pulled the ball back.
HT Sunderland 0 Liverpool 0
Sunderland were handed a golden opportunity less than a minute into the second half when Hyypia was penalised for a challenge in which his boot ended up in Niall Quinn's face 25 yards out.
However, when Reyna tapped the ball to McAteer and then shot, the big defender was in the right place at the right time to intercept.
The Wearsiders really had their tails up by now and it took a desperate challenge by Henchoz to deny Gavin McCann a shooting chance after 50 minutes when he exchanged passes with Quinn on the edge of the box.
But it was the Irishman himself who had perhaps his side's best opening seconds later when Kilbane's superb cross found him unmarked at the far post, only for his powerful header to fly wide.
But just as it looked as though the home side were getting on top, England stars Steven Gerrard and Owen combined to devastating effect to put their side ahead.
The midfielder's defence-splitting pass put the striker in on goal on 55 minutes and as Sorensen advanced, he produced a sublime chip to lift the ball over the keeper and into the net.
Gerrard's evening took a turn for the worse on 63 minutes when he dived into a wild tackle on Kilbane and was rightly cautioned by referee Dermot Gallagher.
But the home side went close twice within seconds four minutes later, Quinn producing a flying save from Dudek with a dipping volley and then Quinn, Bjorklund and Kilbane getting in each other's way as they desperately tried to reach Phillips' inviting cross.
Anelka should have wrapped up the points on 72 minutes when he sped away and twisted his way past Bjorklund and Darren Williams but he curled his shot against the post.
Liverpool could have done with the breathing space a second goal would have given them as the Black Cats launched one last offensive.
Dudek had to go full length to keep a Phillips shot out of his top corner on 77 minutes, and he was a relieved man when the same player sent a close-range header wide two minutes later after Kevin Kilbane had delivered another excellent cross.
Dudek was in action again nine minutes from time when Phillips took aim from 25 yards, but he could only find the keeper's waiting arms.
But as Sunderland battled for an equaliser, Reyna received his marching orders for a second bookable offence, a rash tackle on Owen.
FT: Sunderland 0 Liverpool 1