Liverpool 2 Man United 1:The Anfield fans have finally been delivered a win over top-four opposition under Rafael Benitez and it came today over their biggest rivals of all, courtesy of Ryan Babel in the 32nd minute of a second half they thoroughly dominated.
Liverpool had lost five and drawn one of the previous six home league games against United and looked set for another defeat when new signing Dimitar Berbatov set up Carlos Tevez to fire the visitors into the lead after three minutes.
The homeside were gifted an equaliser after 27 minutes when United keeper Edwin van der Sar parried a deflected Xabi Alonso cross straight at Wes Brown and the ball rebounded into his own net.
The hosts were the more positive side after the break and got their reward 13 minutes from time, securing their first home league win over United since 2001.
A Ryan Giggs error allowed Dirk Kuyt to set up fellow Dutchman Babel to steer home the goal that gave manager Rafa Benitez his first league win over United since he arrived at Anfield four years ago.
United's forgettable day was completed a minute from time when centre back Nemanja Vidic was sent off for a second booking.
With Steven Gerrard starting on the bench after recovering from surgery, centre back Jamie Carragher captained the side and the local lad was rarely troubled as United managed just two shots on target.
"It's great," Carragher told Sky Sport. "It's been too long and it's not just the three points. It's also the belief and confidence it gives us, because we've beaten the best team in Europe. It gives us the belief that we can beat anyone in the league.
"We hope we can now push on for the rest of the season. It should spur us on, because we've not been playing too well up to now. That is the best we've played today.
"It also gives us a bit of breathing space between us and United, and top is where a club like Liverpool should be."
Liverpool boss Rafael Benitez was delighted with the way his side fought back from the early Tevez strike.
"It was good for the confidence of the players," he said. "At half-time we were talking about having confidence and determination going forwards - and in the second half we were the best team.
"We showed quality and character to come back, and the understanding of (Robbie) Keane and (Dirk) Kuyt was very good. Their pressing was really important for the rest of the team."
Disappointed United boss Sir Alex Ferguson admitted his side failed to handle Liverpool's combative approach.
"You don't expect that from Manchester United," he told Sky Sports. "When we have a bad day we usually still get something from the game.
"Overall, they were the better team today. Liverpool produced a performance of tackling, hassling and getting about us.
"The source of our defeat was not coping with the hassling and the tackling. You have to give them credit for that - but at the end of the day, we should cope."