Sadio Mane struck a stoppage-time winner as Liverpool moved to within six points of leaders Chelsea with a hard-fought 1-0 win at Everton.
The Senegalese forward tapped in the rebound to snatch the derby bragging rights after substitute Daniel Sturridge had hit the post with a miscued shot from distance.
It sees Jurgen Klopp's side leapfrog Manchester City back into second place and means Everton have now won just one of the last 20 Merseyside derbies.
The Blues edged a disappointing first half in which neither side managed a shot on target, but struggled to make any real impact in the attacking third as Liverpool bossed the proceedings after the break.
Roberto Firmino was twice thwarted by two different goalkeepers as the Toffees were forced to replace injured stopper Maarten Stekelenburg with Joel Robles.
A feisty affair, lacking in quality, threatened to boil over at times with Ross Barkley lucky not to receive a straight red for a lunging challenge on Jordan Henderson.
The result will galvanise Liverpool's title belief as they stay within range of Chelsea but it will sting for Everton, who are now seven points off the top six in ninth place.
TALKING POINT
The stuff of champions? Ahead of the match pundit, Gary Neville stoked the fires by suggesting Liverpool would have no better chance to end their title drought than this season. If that's the case, this is the type of victory that is the hallmark of champions. The Reds were not at their best and dug in during a testing first period. They improved after the break but looked to be heading towards a draw until the impact of a substitute (Sturridge) contributed to Mane's winner. It was a forgettable game but Liverpool could yet look back on this as a significant moment in their season.
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