Super Eagles forward, Taiwo Awoniyi, made the game-winning shot from close range after his initial attempt bounced off a post.
The striker who left Liverpool in 2021 without making a competitive appearance stunned the home fans at the City Ground Stadium.
At a boisterous City Ground, Nottingham Forest shocked Liverpool with an outstanding performance, moving them off the bottom of the Premier League standings.
Virgil van Dijk blew Liverpool’s best opportunity, and The Reds are still without a road league victory this year.
Forest would have won with a large margin but Liverpool’s Brazilian goalkeeper denied Brennan Johnson’s opportunity and Morgan Gibbs-White’s chance was deflected.
At the final whistle, there were joyful scenes both on and off the field as Forest celebrated their best day since making their 23-year comeback to the EPL.
If Brighton plays Manchester City tough with a draw or a win, Jurgen Klopp’s team, who currently occupy the 7th spot on the table, could drop down the league standings.