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Liverpool won the Champions League in 2004/05, on penalties in the memorable final against AC Milan. However, they came close to not defending their title. Winners were not given the automatic right to defend their title and with Liverpool finishing 5th in the Premiership they were not one of the four English qualifiers for the competition. When this situation had arisen previously in the Spanish League the lowest place qualifer in the League were forced to give up their Champions League place to the Spanish Champions League holders. The FA were not going to follow that precedent, to the relief of Everton who had finished fourth in the Premiership. UEFA gave way and allowed Liverpool to defend their title but required them to start at the First Qualifying Round stage.

   
1st Qualifying Round
1st Leg Wed Jul 13 Total Network Solutions (Wales) Home Won 3-0
2nd Leg Tue Jul 19 Total Network Solutions   Away Won 3-0
Won 6-0 on aggregate.
2nd Qualifying Round
1st Leg Tue Jul 26 FBK Kaunas (Lithuania) Away Won 3-1
2nd Leg Tue Aug 2 FBK Kaunas Home Won 2-0
Won 5-1 on aggregate.
3rd Qualifying Round
1st Leg Wed Aug 10 CSKA Sofia (Bulgaria) Away Won 3-1
2nd Leg Tue Aug 23 CSKA Sofia Home Lost 0-1
Won 3-2 on aggregate.
Champions League Group Stage
Group G Tue Sep 13 Real Betis (Spain) Away Won 2-1
Group G Wed Sep 28 Chelsea (England) Home Drew 0-0
Group G Wed Oct 19 Anderlecht (Belgium) Away Won 1-0
Group G Tue Nov 1 Anderlecht Home Won 3-0
Group G Wed Nov 23 Real Betis Home Drew 0-0
Group G Tue Dec 6 Chelsea Away Drew 0-0
Liverpool finished top of the Group and qualified for the knock-out stages. Full Group results and table.
1st Knock-Out Round
1st Leg Tue Feb 21 Benfica (Portugal) Away Lost 0-1
2nd Leg Wed Mar 8 Benfica Home Lost 0-2
Lost 0-3 on aggregate.