Arsenal goalkeeper Manuel Almunia is unable to stop Gerrard scoring his team's third goal from the penalty spot.
A breakaway by substitute Theo Walcott which saw him skate past four Liverpool players six minutes from time set up Emmanuel Adebayor to make the score 2-2 and 3-3 on aggregate and Arsenal ahead on away goals.
Liverpool got a lifeline a minute later when Arsenal defender Kolo Toure tripped Ryan Babel to concede a penalty and Gerrard, who had not had the best of games, scored to put Liverpool 3-2 ahead.
Babel sealed the win with his stoppage time goal to finally ease the tension at Anfield which was almost unbearable throughout an absorbing, enthralling encounter.
Complete Coverage: UEFA Champions League