Chris Brunt's second-half penalty double enabled West Brom to win 2-1 in the battle of Liverpool managers past and present at the Hawthorns.
Current Reds manager Kenny Dalglish saw Martin Skrtel head his side in front five minutes into the second half.
But his predecessor Roy Hodgson was indebted to Brunt initially levelling matters from the spot and scoring the 88th minute winner.
Liverpool were the first to settle and almost went ahead after two minutes when Dirk Kuyt's close-range effort was blocked by Scott Carson. Kuyt was first to react to the rebound and his shot clipped the top of the bar.
The visitors suffered a setback after six minutes when Glen Johnson pulled up with a hamstring injury. He was replaced by Sotirios Kyrgiakos, who went into the middle of the back four with Daniel Agger replacing Johnson at left-back, but Agger then hobbled off after 25 minutes to be replaced by Danny Wilson.
Liverpool finally broke the deadlock after 50 minutes through Skrtel's second goal of the season. Andy Carroll won a corner after his shot on the turn was tipped over by Carson at full stretch, but the goalkeeper was well beaten by Skrtel's header from the resulting cross.
The home side tried to regroup and Jose Reina went down well to hold Brunt's left-footed shot before the Northern Ireland international brought Albion level from the penalty spot.
Kyrgiakos was adjudged to have brought down the impressive Peter Odemwingie inside the box and Brunt sent Reina the wrong way.
Odemwingie was a constant menace and it was no surprise when he was involved in the second penalty, shaking off another Kyrgiakos challenge before being brought down by Reina.
Brunt hammered the spot-kick past Reina before Nicky Shorey headed off the line from Luis Suarez in added time to seal the win.