Liverpool overturned a first-leg deficit to reach their second successive European Cup final on 12 April 1978. A 3–0 victory over Borussia Mönchengladbach at Anfield completed a 4–2 aggregate win against the side they had beaten in the previous year's final.
Ray Kennedy was involved in all three goals. He scored the first after six minutes, then supplied Kenny Dalglish and Jimmy Case as Liverpool took control of the tie. The holders had lost 2–1 in West Germany; by half-time at Anfield they were ahead on aggregate.
Kennedy began the opening move in midfield. Graeme Souness released Dalglish towards the right byline, and his cross found Kennedy arriving to head past Wolfgang Kleff at the far post.
Liverpool's midfield sustained the pressure. Contemporary reports in the Guardian and Liverpool Daily Post singled out Souness's passing and Kennedy's influence, with Terry McDermott also prominent. Gladbach's attacks did not have the same precision near goal.
Before the interval, Emlyn Hughes lifted the ball towards Kennedy, who headed down for Dalglish to shoot inside the far post. Case completed the scoring early in the second half, taking Kennedy's pass, moving inside his marker and driving past Kleff.
Liverpool used no substitutes. Bob Paisley had left David Fairclough on the bench, starting Dalglish, Case and Steve Heighway in an eleven which also included Tommy Smith and Phil Thompson. Liverpool kept the clean sheet that made their three goals decisive.
The final would be against Club Brugge at Wembley on 10 May. Liverpool had earned the opportunity to retain the European Cup.