Liverpool lost their grip on the FA Cup at Villa Park on 8 April 1990, beaten 4–3 after extra time by Crystal Palace. They had defeated the same opponents 9–0 at Anfield earlier in the season, and led this semi-final twice. The second advantage lasted only a few minutes.
Ian Rush scored in the 14th minute, but injury forced him off after half an hour. Steve Staunton replaced him; Barry Venison came on for Gary Gillespie at half-time. Ray Houghton later recalled that he too had been carrying an injury and should have been withdrawn at the interval.
Palace equalised immediately after the restart. John Pemberton carried the ball forward from his own half and crossed, with Mark Bright finishing the attack. Gary O’Reilly put Steve Coppell’s side ahead in the 70th minute.
Liverpool recovered through Steve McMahon’s volley eleven minutes later. When Pemberton tripped Staunton, John Barnes converted the penalty to restore their lead. At 3–2, the holders were close to another final.
They could not defend the advantage. Andy Gray headed Palace level from a crowded goalmouth late in normal time, and Andy Thorn then struck the crossbar with another header.
The winner came in the 109th minute, again from a set piece. Thorn flicked on Gray’s corner at the near post and Alan Pardew headed past Bruce Grobbelaar. Palace had reached their first FA Cup final.
Liverpool had scored three times despite their disrupted attack. Their inability to deal with Palace’s aerial threat at the other end had decided the tie.