Liverpool finally ended their Real Madrid curse as they maintained their flawless Champions League record with a fully deserved victory in a thrilling encounter at Anfield.
They had failed to beat the holders in eight previous meetings in the tournament - including two Champions League finals - but there was no denying Liverpool as head coach Arne Slot's remarkable start in succession to Jurgen Klopp continues.
Liverpool dominated Carlo Ancelotti's side, who have now lost three of their five games and must fight for a play-off place in the tournament's new format.
In a game where the two superstars, Liverpool's Mohamed Salah and Real's Kylian Mbappe, failed from the penalty spot, Alexis Mac Allister put the hosts ahead after 52 minutes with a low shot across Thibaut Courtois in front of an elated Kop.