The Serie A side are tantalisingly close to their first final appearance in European football's elite competition since losing to the Merseyside club on penalties in the 1984 final at their own stadium.
Ancelotti, who played for Roma between 1979 and 1987, missed that game through injury, but believes the impact of that defeat still lingers and will motivate the current crop of players over their two clashes with Jurgen Klopp's side.
He told Omnisport at the Match for Solidarity: "I did not play that game because, unfortunately, I was injured.
"And they lost because I was not playing that night.
"The Roma-Liverpool final will always be a sad memory for me, and it will be the same for Roma's supporters.
"I was in Rome on the day of Bruno Conti's retirement and I told everyone there that football will always give you a chance at revenge. And this can be a great chance for Roma.
"It's impossible to erase that defeat, but of course they can avenge the 1984 final.
"It will be tough because Liverpool are in great form.
"But Roma did amazing against Barcelona and they can reach the final."