Liverpool finished top of their Champions League group - ending up with a new reds club record of 14 points in the Group stage - after the reds came from behind yet again to secure a comfortable victory.
There were widespread changes from the team that won 3-1 at Blackburn, and the reds needed to better Atletico's score on the night to qualify as group winners.
Cavalieri replaced Reina in goal, Dossena came back in at left back with Insua out of the Champions League squad.
Gerrard, Alonso, Kuyt and Benayoun all got a rest as the reds opted for an unusually attacking 4-4-2 with Lucas assigned to pull the midfield strings with Mascherano and with Babel and Riera taking the flanks. Robbie Keane returned to the line up and was partnered by young French striker David N'Gog.
The reds started brightly, although chances were far from clear cut and it was PSV who broke the deadlock. After wrongfully being awarded a corner Liverpool failed to clear their lines, and Lazovic smashed the ball between Cavalieri's legs.
Typically, the reds woke up and moved up a gear after the goal and a fantastic cross from Lucas Leiva met the head of Ryan Babel who put the reds back in contention as injury time was coming to an end in the first half.
PSV bottom of the group desperately needed all three points to stand any chance of making the UEFA Cup and as the second half wore on gaps were created in the PSV midfield which Liverpool pounced upon. After a few moans from Keane to Babel, who was shooting on sight, the ball arrived at Riera's feet and he fired a stunning shot from 30 yards out to put the reds back in the lead.
PSV hit the post which could have set up an exciting end to the game, but it was Liverpool and Keane who broke from midfield who played a perfect pass and David N'Gog coolly fired his first Liverpool goal to ensure the reds would win the group.
Rafa sent on Jay Spearing, Stephen Darby and Martin Kelly for some first team action and they all coped very well. Lucas had a very good game, and Babel's goal was hopefully the start of an improved spell for him - and not just a nudge in Ajax's direction.
It's been a funny old group stage - but the reds are undefeated and enter the draw as one of the top seeds.
(It's Rome you need to book your flights for this May!)
Liverpool: Cavalieri, Arbeloa (Darby 69), Carragher (Kelly 81), Agger, Dossena, Mascherano, Leiva Lucas, Babel, Ngog, Riera (Spearing 76), Keane.
Subs Not Used: Reina, Gerrard, Alonso, Benayoun.
Booked: Riera, Arbeloa, Dossena.
Goals: Babel 45, Riera 69, Ngog 77.
PSV: Isaksson, Culina, Marcellis, Brechet, Salcido, Mendez (Manco 80), Simons, Dzsudzsak, Bakkal (Nijland 83), Lazovic, Amrabat (Koevermans 72).
Subs Not Used: Cassio, Rodriguez, Pieters, Wuytens.
Booked: Simons, Mendez.
Goals: Lazovic 36.
Ref: Nikolai Ivanov (Russia).
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