Four days after Everton had knocked them out of the League Cup at Anfield, Liverpool beat their neighbours 2–0 on the same ground on 1 November 1987. Steve McMahon and Peter Beardsley scored, with John Barnes involved in both goals.
Kenny Dalglish retained the side beaten in midweek, but Everton again began strongly. Trevor Steven came close to putting the visitors ahead when he met Ian Wilson's low cross, only for the ball to strike Bruce Grobbelaar's knee.
Liverpool broke through after 35 minutes. Barnes intercepted Ian Snodin's pass and released McMahon between the Everton defenders. McMahon resisted Kevin Ratcliffe's challenge and lifted his finish over Neville Southall.
Everton remained in contention after the interval, while John Aldridge had a goal disallowed for offside. The second goal, after 70 minutes, began with Barnes's backheel to McMahon. His cross reached Aldridge, whose blocked effort fell to Beardsley. Beardsley drove the ball in off the underside of the bar.
The win returned Liverpool to the top of the First Division. They had taken 31 points from their opening 11 matches, winning ten and drawing one. Arsenal and Queens Park Rangers were two points behind, each having played twice more.