Goals from Collins John and Luis Boa Morte gave Fulham a deserved victory over lacklustre Liverpool.
The home fans paid an emotional tribute to midfield legend Johnny Haynes, who died on Tuesday, and then saw their side take the lead after 33 minutes.
Claus Jensen clipped a pass over the defence and John fired past Jose Reina.
Fulham substitute keeper Tony Warner made a super save from Luis Garcia before Boa Morte sealed the win after good work from Steed Malbranque.
The result leaves Liverpool still seeking their first Premiership away win since April but Fulham deserved their first league triumph in six attempts, a suitable tribute to "The Maestro" Haynes.
Before the match started, Haynes' friend and former team-mate Tosh Chamberlain laid a wreath in the centre circle along with those donated by the Fulham supporters' trust and the supporters' club.
After a minute's silence, Fulham started quickest and should have taken the lead after five minutes.
Malbranque's cross evaded Reina but Ahmad Elrich, making his first Premiership start, somehow blazed over from six yards.
It turned out to be a rare moment of interest in a listless first-half.
Liverpool were without injured captain Steven Gerrard, while Peter Crouch was on the bench, leaving Jamie Carragher as the only English player on show for the watching Sven-Goran Eriksson.
Harry Kewell made his first start for Liverpool since the Champions League final and looked off the pace, while Fernando Morientes produced some neat touches but his team-mates were rarely on the same wavelength.
Liverpool pair Xabi Alonso and Mohamed Sissoko dominated the midfield, but the visitors failed to get a shot on target in the first half and went behind after 33 minutes.
Claus Jensen's floated pass clipped off Sissoko and Alonso was slow to retreat, making Liverpool's offside appeals in vain as John coolly finished.
Fulham continued to press after the break, allowing Liverpool more space on the counter-attack.
Djibril Cisse was put through on the right, but there was no one to meet his cross, and Kewell's first-time lob had Mark Crossley back-pedalling before it dropped onto the top of the net.
It was almost the last action of the game for Crossley, who came off with what looked like a hamstring problem to be replaced by ex-Liverpool keeper Tony Warner.
Warner proved to be the home side's hero as Liverpool went in search of an equaliser they hardly deserved.
Substitute Luis Garcia skipped past Alain Goma, but Warner dived to his right to tip away the Spaniard's supber curling effort and the keeper then kept out Sami Hyypia's fierce right-foot volley.
Fulham wrapped up the win on 90 minutes when Malbranque jinked through the Liverpool defence and set up Boa Morte, who sent a glorious shot high into the roof of the net.
The Reds were again left appealing for offside, but the referee ignored them once more and Benitez's side stay in the bottom half of the table.
Fulham boss Chris Coleman:
"It was a special day for us because we were paying tribute to a Fulham legend and a football legend.
"It was great to round it off with two great goals and a wonderful display.
"I'm thrilled with the players. Liverpool had a lot of possession, but we were patient and when we attacked we did so with purpose."
Liverpool boss Rafael Benitez:
"The result is not good. They created maybe two chances and scored two goals.
"We created a lot of chances and didn't score. The best player in the second half was their goalkeeper.
"Gerrard was almost fit. Two days ago he was training, but yesterday he felt something again."
Fulham: Crossley (Warner 63), Volz, Goma, Bocanegra, Niclas Jensen (Rosenior 69), Malbranque, Diop, Claus Jensen, Boa Morte, Elrich (McBride 76), John.
Subs Not Used: Helguson, Rehman.
Goals: John 30, Boa Morte 90.
Liverpool: Reina, Josemi, Carragher, Hyypia, Traore (Luis Garcia 59), Sissoko, Alonso, Riise, Kewell (Crouch 75), Cisse, Morientes.
Subs Not Used: Hamann, Carson, Warnock.
Booked: Josemi, Sissoko.
Ref: M Atkinson (W Yorkshire).