James made his Liverpool debut on 16 August 1992 in a 0–1 league defeat to Nottingham Forest. After conceding twenty goals in eleven matches in the first half of the 1993–94, he was dropped in favour of veteran Bruce Grobbelaar, but was recalled to the starting line-up and kept his first clean sheet of the season in a 1–0 away win over Arsenal on 31 January 1993, which included a penalty save from Paul Merson. He also received a runners-up medal in 1996 in the FA Cup while being on the losing side against Manchester United.