Jurgen Klopp's side scored their 32nd and 33rd goals of the competition on Tuesday night in the quarter-final second leg at Manchester City after a 2-1 win at the Etihad Stadium.
With 33 goals in the 2017-18 competition, Liverpool broke the record of 32 set by Manchester United in the 2002-03 Champions League campaign.
The goal which equalled United's mark was appropriately scored by Liverpool's star man Mohamed Salah, who levelled the game at 1-1 in the 56th minute.
And, 20 minutes later, Roberto Firmino netted to give the Reds the record all for themselves, putting them up 2-1 on the evening and 5-1 on aggregate.
That 5-1 scoreline would be the final margin of victory for Liverpool, who easily advanced to the semi-finals past the Premier League champions-elect.
Klopp's men will have at least two more chances to add to their record, and potentially a third should they advance to the final on May 26 in Kiev, Ukraine.
33 - Liverpool's haul of 33 goals is the most by an English team in a single Champions League season. Juggernaut.— OptaJoe (@OptaJoe) 10 April 2018
It was also a record-breaking evening for Salah and Firmino as their goals ensured they became the first Liverpool players to score eight times in a single Champions League season.
Overall, Salah has an incredible 39 goals for the Reds this season, marking an outstanding debut campaign for the former Chelsea man.
In total he has been involved in no less than a half century of goals for his club, a mark unmatched by anyone else in the English top flight.