Barmby was involved in Liverpool's successful season of 2000–01 in which they won the FA Cup, League Cup and UEFA Cup. He scored against his previous club Everton in the Merseyside derby in October 2000, and scored a penalty kick in the shootout against Birmingham City in the League Cup Final. An injury picked up in the FA Cup semi-final in April put his participation in the FA Cup and UEFA Cup finals in doubt. In the end he was left out of the FA Cup final squad but was on the bench for the UEFA Cup Final. The following season he started as Liverpool won the 2001 FA Charity Shield. However after persistent injury and lack of form blighted his second season at the club, Barmby was sold to Leeds United in August 2002 for a fee of £2.75 million, where he linked up with Terry Venables, his first manager at Tottenham. Barmby scored eight goals in his time at Liverpool, all of which came in the 2000–01 season: four in the UEFA Cup, two in the League, and one each in the FA Cup and the League Cup.