Alexis Mac Allister and Cody Gakpo scored in a dominant 2-0 win at Anfield this morning.
Such was Liverpool's superiority that they could afford the luxury of a rare Mohamed Salah penalty miss in between goals, as they claimed a fifth win from five games to sit two points clear at the head of the new-look league format.
On a miserable night for the Spaniards, now 24th in the 36-team competition, Kylian Mbappe was well-shackled and also missed a penalty that would have drawn Real level against the run of play in the second half.
With Liverpool dominating possession and chances against the Champions League holders, Mac Allister struck the opener in the 52nd minute, after a neat one-two with Conor Bradley, in front of a delirious Kop end at Anfield.
Gakpo sealed the game in the 76th minute with a header past Thibaut Courtois from an Andy Robertson cross.
"When you play against teams like Real Madrid, it’s always nice to score, but the most important thing is that we won it, and I think in a really good way," Mac Allister said.
"We dominated the game, we deserved this."
The result continued boss Arne Slot’s scintillating start at Liverpool, who as well as their 100% Champions League record also sit top of the Premier League by eight points.
HISTORY
Liverpool had not beaten Real Madrid since 2009, failing to win any of the previous eight matches including two painful Champions League final defeats.
"It’s a big result, it was a massive game for us. Obviously, they got the better of us the last few times in the Champions League so we wanted to come out here tonight and put on a performance," said goalkeeper Caoimhin Kelleher.
His second-half penalty save against a confidence-sapped Mbappe brought one of the biggest roars of the night.
"I don’t really look at the player too much, I was confident and thankfully I went the right way again," he said.
Slot has surpassed expectations in the transition from his popular predecessor Juergen Klopp, bringing more calm and control to Liverpool's play while retaining their relentless high press and swashbuckling attacking style.
The home side could have run away with the game in the first half, as Darwin Nunez had three glorious chances but found Courtois in formidable form. The biggest cheer of the first half came when right back Conor Bradley produced a stunning tackle to stop Mbappe's marauding run towards goal.
In the second half, after Mbappe's weak penalty was saved by Kelleher, Salah brought more gasps from the crowd when he sent his spot kick wide of the post.
Real coach Carlo Ancelotti is struggling in the Champions League: his side has now lost three of their five games.
"I think that to be totally honest with you, it was a fair result. Liverpool deserved to win. They have a really good dynamic at the moment," he acknowledged graciously.
The top eight teams qualify automatically for the last 16 while the next 16 enter a two-legged playoff to join them.
Villa secure goalless draw
Aston Villa had to settle for a 0-0 draw with Juventus, after a last-gasp effort by Morgan Rogers was chalked off for a foul on Juventus keeper Michele Di Gregorio.
Villa thought they had won it at the death, to end a six-game winless streak, when Di Gregorio failed to catch a free kick. But Diego Carlos fouled the Juventus keeper as Rogers was lashing the ball into the net, and boos poured out from Villa fans after the final whistle.
The match was far from a classic, with Juventus seemingly content to keep possession, and both sides squandered chances, with Villa's best coming from Lucas Digne who hammered a free kick off the crossbar seconds before halftime.
Midway through the second half, Francisco Conceicao's header from a corner looked destined for the back of Villa's net but goalkeeper Emi Martinez dived to get his fingertips to the ball.
Unai Emery's Villa, who had kicked off their Champions League campaign with three victories and three clean sheets, are ninth in the table after five games, while their Italian visitors are 17th.