With his side travelling to Anfield to face the Reds on Saturday, the Scot has insisted the Villans are constantly improving and can match Brendan Rodgers' men
The Villans sit just outside the relegation zone by virtue of goal difference and face a Reds team growing in confidence under new manager Brendan Rodgers.
But the Scot believes the Midlands side can get result at Anfield, with the historic nature of the ground serving as inspiration.
"My players will thrive on it. They will love the atmosphere and the occasion of it,” Lambert told the club’s official website.
"It's a really prestigious stadium and the players who have played there, past and present, have been world-class. Arguably the greatest player to come out of Liverpool is Kenny Dalglish!
"They have won European Cups, league championships and it is a club steeped in tradition.
"I know how hard it is going to be. They have got some great players at the minute too! Brendan has a really good side there.
"I know Brendan very well, he's a great guy and he did a brilliant job at Swansea. He's then gone to Liverpool and got them going.
"It will be a good atmosphere and something we will try to enjoy.
"We're doing really fine. The other night the lads were excellent the way they went about things but regardless of that result, Liverpool was always going to be tough.
"We've always said that it's important not to let the mood go down when you lose and we will try and keep things in perspective now we've won.
"Regardless of Tuesday, going to Anfield was always going to be difficult. But we are going to try to win it."
Villa are on a five-match unbeaten run, and the Scot is happy with the progress his team have made so far this term despite their somewhat precarious position.
He added: "We've had two defeats in eleven matches, it is not too bad is it. I think people think because we are young we are not going to do this or that. They are getting the credit now they deserve because they are playing really well.
"Since the win at Sunderland we've been doing really well and I don't have a problem with performances.
"Yes, you'd like to have more points on the board but the one thing I can't argue with is the effort and the way they are playing. Only Manchester United and Manchester City have beaten us during that run and that shows how well we are playing at the moment.
"There are a lot of young lads, a lot of enthusiasm and energy, and we are playing with freedom which is great.
"You sense they are playing well. They have got the belief to go and win. A lot has been made of being young but they are good enough and that's the belief I have got."