Real Madrid played one of their best matches of the season to earn a historic victory at Anfield Road, were they had never won before.
Los Merengues consolidated their lead atop group B, and they can almost see themselves in the next round after getting all points in their first three games.
Cristiano Ronaldo and Karim Benzema trashed Liverpool in the first half and showed they are in superb form ahead of El Clasico against arch-rivals Barcelona.
The Reds made an interesting start to the game, pressing their rival high up and threatening Iker Casillas. However, as that intensity began to fade, Los Blancos took control of the game.
Carlo Ancelotti men gave a footballing master class in the last 30 minutes of the first half, with Isco and James Rodriguez putting in a brilliant performance in the playmaker position.
Ronaldo opened the score in the 23rd minute with a very difficult shot. James sent a bouncing pass to the Portuguese and Ronaldo slid between Liverpool’s centre-backs to strike a brilliant chip beyond the keeper and into the far corner.
Benzema, who was a nightmare for the Reds defence, scored the next two goals. The first was a superb header over a Simon Mignolet, following a cross from Toni Kroos.
His second came from a terrible defending from the hosts. Three defenders missed the header in a corner; the ball bounced off Pepe and fell at the feet of Benzema. The Frenchman couldn’t miss.
Joao Coutinho had a great chance to shorten Real’s lead just before half-time. The Portuguese international drilled a terrific shot from 30 metres, but it hit the post with Casillas beaten.
Liverpool tried to react at the start of the second half, but Los Blancos were solid in defence. As Brendan Rodgers men started to get tired, Real had good chances to seal the victory. Ronaldo missed the best off all, only having to beat Mignolet from two metres, but the keeper made the save with his foot.
The Portuguese came one goal short of becoming the Champions League’s all-time scorer. He has scored 70, one less that Los Blancos legend Raul Gonzalez.