Liverpool reached the European Cup semi-finals with a 4–1 victory over Benfica at Anfield on 15 March 1978. Ian Callaghan and Kenny Dalglish scored in the opening 17 minutes, extending the advantage earned in Lisbon; late goals from Terry McDermott and Phil Neal completed a 6–2 aggregate win.
Bob Paisley named the same starting eleven as in the first leg, including Phil Thompson, who had been replaced by Alan Hansen during that match. Liverpool began with a 2–1 lead across the tie and a Wembley meeting with Nottingham Forest three days away.
An early snow flurry passed before Liverpool's opening goal. Jimmy Case found Callaghan, whose shot slipped through Bento's attempted save. Dalglish then intercepted Toni's misplaced backward pass, ran clear and beat the goalkeeper for the second.
Benfica were now three goals behind on aggregate. Nené reduced the deficit before half-time after a Liverpool defensive mistake, scoring for the second successive leg. At the interval Liverpool led 2–1 on the night and 4–2 overall.
The score did not reflect a uniformly fluent performance. Contemporary reports in the Guardian and Liverpool Daily Post both described inaccurate passing and errors on either side. Liverpool had established a commanding position quickly, but did not add to their lead again until late in the game.
McDermott made it 3–1 after Steve Heighway's cross led to blocked attempts from Ray Kennedy and Dalglish. The loose ball reached McDermott, who finished past Bento. Neal completed the scoring from a tight angle after a free-kick routine, driving the ball inside the post.
The attendance was 48,364. Liverpool had won both legs and scored six times against the Portuguese side, keeping their defence of the European Cup alive.
Domestic business came next. Nottingham Forest awaited at Wembley in Liverpool's first League Cup final. The Benfica tie was settled; Liverpool could turn to that match with their European semi-final place confirmed.