Two-goal substitute Mark Walters ruined Kenny Dalglish's Liverpool homecoming by killing off Blackburn's brave comeback with just five minutes left of an emotional afternoon at Anfield.
Walters, a 1.2 million pound contribution to Graeme Souness' rebuilding programme since Dalglish's sensational walk-out in February 1991, had put Liverpool ahead with a thumping 25-yard drive in the 77th minute.
Alan Shearer's spectacular 20th goal of his own amazing season looked like making it a day for Dalglish to remember, pulling the visitors level with 10 minutes to go.
But then Ian Rush found Steve McManaman arrowing in on the right-hand side of the Blackburn penalty area and, when he angled in a low cross, no-one could intercept before Walters slid in at the far post for his eighth goal of the season.
There was no way back a second time for Blackburn but, as his old fans loyally chanted 'Souness', Dalglish slipped into the unaccustomed visitors' dressing room with barely a flicker of emotion.
His entrance had been just as low-key, briefly raised his hand to acknowledge the applause that rang around the ground.
But his first big-game return since he brought down the curtain on 14 glorious years as player and manager attracted Anfield's biggest gate of the season, almost 44,000.
Liverpool soon made Dalglish feel at home with the pass mastery which was the hallmark of his Anfield days. But his new club has a stubborn, robust edge which blunted their penetration.
John Barnes, dazzling two defenders, had his sixth minute run bulldozed into the oblivion by Colin Hendry, leaving the England winger writhing and referee Philip Don unimpressed with home penalty appeals.
It was more than 20 minutes before Liverpool threatened seriously once more, Barnes again toying with full-back David May before whipping in a cross which eluded Rush but was met at the far post by Ronnie Rosenthal with a header which Hendry almost turned into his own net.
England striker Shearer, tightly marked by Torben Piechnik, had few glimpses of his 20th goal of the season, and Blackburn's best first-half chance was headed wide by Mark Atkins from Gordon Cowans' 28th minute corner.
Blackburn were far more positive in the second period, Mike Hooper having to make his first save in the 49th minute from Shearer's header.
Piechnik slid in to deny Mike Newell in front of an exposed goal and then Hooper saved brilliantly in the 55th minute, parrying Cowans' thunderous 20-yard volley.
They came even closer eight minutes later when Newell, twisting away from Piechnik into Alan Wright's low centre, spun and lofted a right-foot shot against Hooper's crossbar.
A goalless draw looked inevitable but suddenly the goals flooded in. Redknapp won his tussle with Cowans to feed Walters, a replacement for Rosenthal, and he stepped forward to crash in an unstoppable drive.
Blackburn battled back and Hendry's header from substitute Roy Wegerle's corner found Shearer who spun on his left leg and hit a right-foot volley which left Hooper for dead.
But Dalglish knows Liverpool too well to count his chickens, and his caution was duly justified when Walters stole his glory. Dalglish said afterwards: "Sometimes the performance matters more than the result and I thought we played well. But when you come to Anfield and make a couple of mistakes, you're in a bit of trouble. The lads did themselves and the club proud and were a little unfortunate not to come away with something to show for it. But I'm sure there are a lot of opposing managers who have stood here and said that."
He thanked the Anfield fans for his warm reception, saying: "Everyone who has come back here always gets a good reception. They were generous when I played here and when I was a manager, and it was the same today. Obviously I have a lot of memories and I said when I left that Liverpool Football Club would never leave me, even though I was leaving them, and nothing today would make me change my that view."
Walters said: "The first was the best I've scored for Liverpool. When Shearer equalised, we were devastated because the same sort of thing happened against Everton. But this time the manager should be pleased because we kept going and didn't let our heads go down."
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