Eidur Gudjohnsen's late goal left Liverpool hanging on against Barcelona before reaching the last eight of the Champions League on away goals.
The former Chelsea star rounded Pepe Reina after 75 minutes to leave Liverpool, who had dominated, living on their nerves in the closing stages.
John Arne Riise and Momo Sissoko both struck the bar as Liverpool left Barcelona's stars in the shade.
Ronaldinho hit a post, but Liverpool deserved to reach the quarter-final.
Liverpool manager Rafael Benitez named the team that won so brilliantly in the Nou Camp, and they did everything but extend that lead in a pulsating first 45 minutes.
Barcelona's array of attacking riches, Ronaldinho, Samuel Eto'o and Lionel Messi - were barely seen.
Riise's trademark shooting was used to thunderous effect in the early stages, firing inches wide with an angled drive after seven minutes, then rattling the bar from 20 yards three minutes later.
Sissoko had an eventful first half, which included a yellow card for a foul on Deco that rules him out of Liverpool's next Champions League game.
Barcelona engineered a remarkable escape to keep the tie alive after 25 minutes.
Victor Valdes produced a stunning double save from Craig Bellamy and Dirk Kuyt before captain Carles Puyol scrambled Riise's header off the line.
Barcelona's nerves were fraying, and they were fortunate again when Valdes' poor clearance landed at the feet of Sissoko 40 yards out, but his speculative shot bounced off the top of the bar with with the goal unguarded.
Ronaldinho burst into life seven minutes after the interval, escaping three defenders before striking the outside of the post as Anfield held its breath.
The Brazilian's strike partner Eto'o looked short of match fitness, and it was no surprise when he was substituted on the hour by Ludovic Giuly.
Steven Gerrard was Liverpool's best attacking outlet, shooting wide after a typical surge, then testing Valdes with a powerful drive.
Former Chelsea star Gudjohnsen was sent on for defender Lilian Thuram in a desperate move by Barcelona - and the move paid off when he put Barcelona ahead on the night with 15 minutes left.
Messi played in the Icelander, who slipped away from Jermaine Pennant and rounded Pepe Reina for a cool finish.
Gerrard was again forcing Liverpool forward, and once again Valdes was forced to block at the near post as Barcelona knew they had to go for broke.
Substitute Peter Crouch shot over from close range in the dying seconds, but it did not prove costly.
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Liverpool: Reina, Finnan, Carragher, Agger, Arbeloa, Gerrard, Sissoko, Alonso, Riise (Aurelio 77), Kuyt (Crouch 89), Bellamy (Pennant 67).
Subs Not Used: Dudek, Hyypia, Mascherano, Zenden.
Booked: Arbeloa, Sissoko, Pennant, Reina.
Barcelona: Valdes, Thuram (Gudjohnsen 71), Marquez, Puyol, Oleguer, Xavi, Iniesta, Deco, Messi, Eto'o (Giuly 61), Ronaldinho.
Subs Not Used: Jorquera, Zambrotta, Edmilson, Sylvinho, Saviola.
Goals: Gudjohnsen 75.
Ref: Herbert Fandel (Germany).
- LFC Stats/Goalscorers
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